Western governments are increasingly trying to stimulate citizens to ‘co-produce’ public services, among others, by offering them financial incentives. However, there are competing views on whether financial incentives stimula

Bekkers, V.J.J.M. (Victor)

Jilke, S.R. (Sebastian)

Tummers, L.G. (Lars)

Voorberg, W.H. (William)

Western governments are increasingly trying to stimulate citizens to ‘co-produce’ public services, among others, by offering them financial incentives. However, there are competing views on whether financial incentives stimulate co-production. While some argue it increases citizens’ willingness to co-produce, others suggest that it would decrease their willingness (i.e., crowding-out). To test these competing expectations, we designed a set of experiments that offered subjects a financial incentive to assist municipalities in helping refugees to integrate. First, we conducted an experiment among university students (n=160) within a laboratory setting. Second, we replicated and extended initial findings among a general adult sample (n=1,359). Results suggest that small financial rewards have no effect: they neither increase nor decrease people’s willingness to co-produce. When the offered amount is increased substantially (from 2 to 10 Euro/hour), willingness to co-produce only increases marginally. Hence, financial incentives are not a very cost-efficient instrument to stimulate co-production

Financial Rewards Do Not Stimulate Co-Production

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