Arbeitspapier

Working Too Much for Too Little: Stochastic Rewards Cause Work Addiction

People are generally assumed to shy away from activities generating stochastic rewards, thus requiring extra compensation for handling any additional risk. In contrast with this view, neuroscience research with animals has shown that stochastic rewards may act as a powerful motivator. Applying these ideas to the study of work addiction in humans, and using a new experimental paradigm, we demonstrate how stochastic rewards may lead people to continue working on a repetitive and effortful task even after monetary compensation becomes saliently negligible. In line with our hypotheses, we show that persistence on the work task is especially pronounced when the entropy of stochastic rewards is high, which is also when the work task generates more stress to participants. We discuss the economic and managerial implications of our findings.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 12992

Classification
Wirtschaft
Design of Experiments: Laboratory, Group Behavior
Neuroeconomics
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Personnel Economics: Labor Management
Subject
incentives
work addiction
occupational health
experiments

Event
Geistige Schöpfung
(who)
Corgnet, Brice
Gächter, Simon
González, Roberto Hernán
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2020

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Corgnet, Brice
  • Gächter, Simon
  • González, Roberto Hernán
  • Institute of Labor Economics (IZA)

Time of origin

  • 2020

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