Effort and social comparison: Experimental evidence from Uganda

D'Exelle, Ben, Habraken, Rik and Verschoor, Arjan (2024) Effort and social comparison: Experimental evidence from Uganda. Economic Development and Cultural Change, 72 (4). pp. 1769-1793. ISSN 0013-0079

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Abstract

Individual effort is key to generate income and escape from poverty. In small-scale societies in developing countries, where effort and resulting income are easily observable, social comparison can influence effort in both positive and negative ways. In addition, the effects of social comparison are less obvious where income depends on both the quality and quantity of production. To study the effects of social comparison, we use a lab experiment in which participants conduct a real-effort task characterized by a quantity-quality trade-off. We experimentally vary (1) whether feedback is provided about peers’ performance and (2) whether one can reduce peers’ earnings by so-called money burning. We find that feedback about peers’ performance increases the earnings of low performers as they shift effort from quantity to quality. High performers shift effort to quality only when they are targeted by money burning. Given the different response of low and high performers, the provision of feedback about peers’ performance reduces inequality in earnings but not when money burning is an option. Anticipating these social-comparison effects can help policymakers who work with groups or communities to optimize policy design.

Item Type:	Article
Additional Information:	Data availability statement: Data are provided through Dataverse at https://doi.org/10.7910/DVN/ZHGUDU. Funding information: Rik Habraken acknowledges financial support from the University of East Anglia, where he was based when the work presented in the paper was carried out.
Faculty \ School:	Faculty of Social Sciences > School of Economics Faculty of Social Sciences > School of Global Development (formerly School of International Development)
UEA Research Groups:	Faculty of Social Sciences > Research Centres > Centre for Behavioural and Experimental Social Sciences Faculty of Social Sciences > Research Groups > Behavioural Economics Faculty of Social Sciences > Research Groups > Environment, Resources and Conflict Faculty of Social Sciences > Research Groups > Gender and Development Faculty of Social Sciences > Research Groups > Impact Evaluation University of East Anglia Schools > Faculty of Science > Tyndall Centre for Climate Change Research Faculty of Science > Research Centres > Tyndall Centre for Climate Change Research Faculty of Social Sciences > Research Groups > Behavioural and Experimental Development Economics
Related URLs:	http://www.scopus.com/inward/record.url?...
Depositing User:	LivePure Connector
Date Deposited:	23 Mar 2023 10:30
Last Modified:	07 May 2025 00:08
URI:	https://ueaeprints.uea.ac.uk/id/eprint/91667
DOI:	10.1086/725231

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