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Financial Rewards Do Not Stimulate Co-Production: Evidence from Two Experiments

Public Administration Review, Forthcoming

42 Pages Posted: 27 Nov 2017  

William Voorberg

Erasmus University Rotterdam

Sebastian Jilke

Rutgers University-Newark

Lars Tummers

Utrecht University

V.J.J.M. Bekkers

Erasmus University Rotterdam (EUR) - Department of Public Administration

Date Written: 2017

Abstract

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.

Keywords: Co-Production, Volunteering, Experiment, Financial Incentive, Crowding-Out, Motivation

Suggested Citation

Voorberg, William and Jilke, Sebastian and Tummers, Lars and Bekkers, V.J.J.M., Financial Rewards Do Not Stimulate Co-Production: Evidence from Two Experiments (2017). Public Administration Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3076096

William Voorberg

Erasmus University Rotterdam ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Sebastian Jilke (Contact Author)

Rutgers University-Newark ( email )

111 Washington Street
Center for Urban and Public Service
Newark, NJ 07102
United States

HOME PAGE: http://www.sebastianjilke.net

Lars Tummers

Utrecht University ( email )

Vredenburg 138
Utrecht, 3511 BG
Netherlands

V.J.J.M. Bekkers

Erasmus University Rotterdam (EUR) - Department of Public Administration ( email )

Burgemeester Oudlaan 50
Rotterdam, 3062
Netherlands

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