LARGE MONETARY INCENTIVES AND THEIR EFFECT ON MAIL SURVEY RESPONSE RATES

The effect of various large monetary incentives was examinedin a mail survey of owners of small construction subcontractingcompanies. The sample was randomly divided into seven groups,each of which received either a different monetary amount enclosedwith the first mailing ($1 cash, $5 cash, $5 check, $10 check,$20 check, or $40 check) or an offer of a $50 check to be sentonce the questionnaire was returned. These groups were comparedagainst each other and against a control group that did notreceive an incentive. Three follow-up mailings were sent tothe nonrespondents in each group. The results indicate that$1 significantly increased the response rate over the no incentivecontrol condition regardless of the number of mailings. Theresponse rate also increased significantly as the incentiveamount increased from $1 to $5 and from $5 to $20. There wasa nonsignificant difference in response rate between the $5check and $5 cash groups. The promise of $50 did not resultin a significantly higher response rate than the control group.Discussion includes a cost-benefit analysis of the incentives,as well as a section about the increased "favorability" of respondentstoward the survey sponsor within the large incentive groups.     

CHARITIES, NO; LOTTERIES, NO; CASH, YES: MAIN EFFECTS AND INTERACTIONS IN A CANADIAN INCENTIVES EXPERIMENT

The effects on response rates to mail surveys of prepaymentcash incentives, charitable donations, and the chance to wina lottery prize are examined in a true experimental design.A survey on environmental issues was conducted during the fallof 1994 among 3,088 households drawn from the Grand River watershedregion of southwestern Ontario, Canada. The 20-cell incentivesexperiment crossed three levels of prepaid monetary cash incentive($2, $5, and $10) with a control group (no cash incentive),plus the offer to make a charitable donation ranging from $2to $10 on behalf of the respondent, or participation in a lotteryfor prizes of $200. The overall response rate to the survey,with three follow-ups, was 70.7 percent with the effects ofthe prepaid cash rewards demonstrated, but not those for thelottery or charitable donations. Logistic regression analysisof response rate supports a main effects model for cash incentivesbut does not support either of two alternative models for maineffects of the lottery and charitable donations or interactions.Further analysis demonstrates a pattern of earlier responseas a result of prepaid incentives. The findings are discussedin terms of their cost-benefit implications and with respectto conceptualizations of respondents' motives for completingmail questionnaires.     

The effect of a college pen incentive on survey response rate among recent college graduates

Incentives have shown a variable effect in improving survey response rates, but the effect of a pen from an organization to which the respondent has loyalty has not been studied. Recent college graduates were randomized to receive or not receive a college logo pen accompanying an initial survey mailing. Among 119 total respondents, there were no differences in response rate to the initial mailing, to a second mailing to nonrespondents who did not receive a pen in the initial mailing, or in total response rate. Investigators may save money by not including a pen incentive or may consider stronger incentives.     

UNDERSTANDING MAIL SURVEY RESPONSE BEHAVIOR A META-ANALYSIS

A meta-analysis of prior studies of techniques designed to inducemail survey response rates was conducted. Research encompassing184 effects (study outcomes) in 115 studies (articles) for 17predictors of response rate was examined. The average effectsize across all manipulations was r=.065, indicating an averageincrease of about 6.5 percent in response rates for manipulations.Effect sizes for specific predictors and two potential moderatorsof effects were examined. Results indicated that repeated contactsin the form of preliminary notification and follow-ups, appeals,inclusion of a return envelope, postage, and monetary incentives,were effective in increasing survey response rates. Significanteffect sizes for the predictors ranged from an increase in responseof 2 percent to 31 percent. Implications of the results forthe conduct of mail surveys and future research on mail surveyresponse behavior are discussed.     

Incentives for Increasing Return Rates: Magnitude Levels, Response Bias, amd Format

The use of monetary incentives has been shown to significantlyincrease response rate. However, previous investigations haverarely investigated the effects of incentives greater than $1,compared different magnitudes of incentives, or investigatedresponse bias due to incentives. The current study also investigatedthe utility of an Answer Check. Results suggest that monetaryincentives increase response rate, larger incentives do notnecessarily further increase survey response, incentives donot appear to bias responses, and the Answer Check does notfacilitate response rate.     

The Influence of Incremental Increases in Token Cash Incentives on Mail Survey Response: Is There an Optimal Amount?

The research reported is from a large-scale, national, mixed-modesurvey (N = 49,675 addresses), in which token incremental, noncontingentincentives used in the second (mail) stage of the survey weretested in an experimental design. The levels of the incentivestested ranged from $0 to $10, in one-dollar increments, withthe exception that there was no $9 condition. Furthermore, theexperiment was conducted using three types of household addressesthat originally were sampled in the first stage of the mixed-modesurvey via a random digit dial (RDD) frame: (1) households thatagreed to participate in the mail stage of the survey; (2) householdsthat were never contacted in the RDD stage despite numerouscontact attempts; and (3) households that had refused to participatewhen contacted in the RDD stage. It was determined that amongthose households that had previously agreed to participate,even those that received no cash incentive ($0) were more likelyto return completed surveys than the groups of previously noncontactedand previously refusing households that received $10. It wasalso found that the nature of the outcome of the prior contactwith the household mediated (that is, interacted with) the proportionaleffects of the incremental incentives, in ways only partiallyconsistent with Dillman’s social exchange theory. Thefindings, which are consistent with leverage-salience theory,suggest that if there is an optimal amount for an incentiveto use in a mail survey, then it is a variable amount best targetedto the individual household.     

Effects of incentive size and timing on response rates to a follow-up wave of a longitudinal mailed survey

Young adults who had previously participated in a longitudinal survey of youth were sent a questionnaire. They were randomly assigned to receive a $20 prepayment, a $20 postpayment, or a $25 postpayment for participation in the latest survey. Those in the large incentive condition were 7 percentage points more likely to return a survey than those in the smaller, postpayment group. Prepayment had a smaller, less reliable effect. Effects of incentive magnitude and timing were consistent at each month of the study period; only better high school grades distinguished early responders from late responders. Nonresponders had characteristics suggestive of low social conformity and were more likely than responders to be African American and male and have low SES. The discussion centers on motivations for participating in research and differences in the incentives likely to promote continued response versus initial study enrollment.     

EFFECTS OF A PREPAID NONMONETARY INCENTIVE ON RESPONSE RATES AND RESPONSE QUALITY IN A FACE-TO-FACE SURVEY

We conducted a randomized experiment on a face-to-face interviewsurvey in order to test the effects on response rates of a prepaidnonmonetary incentive. Results showed a statistically significantincrease in response rates, mostly through reduction in refusalrates, in the half sample that received the incentive (a gift-typeballpoint pen) as compared with a no incentive control group.The effect appears to be due to greater cooperation from incentiverecipients at the initial visit by an interviewer. Unexpectedly,the incentive group also showed a significantly higher rateof sample ineligibility, possibly due to easier identificationof vacant residences or nonexistent addresses. In addition,evidence suggests greater response completeness among respondingincentive recipients early in the interview, with no evidenceof increased measurement error due to the incentive.     

Social Welfare and Urban Problems

Financing Higher Education: Recommendations of the Carnegie Commission on Higher Education. Four volumes (see below). Berkeley, California, Carnegie Commission on Higher Education, 1968.

The Economics of the Major Private Universities, William G. Bowen. 66 pages. $1.25 softbound.

The Finance of Higher Education, Howard R. Bowen. $1.00 softbound.

Alternative Methods of Federal Funding for Higher Education, Ronald A. Wolk. 261 pages. $2.00 softbound.

Quality and Equality: New Levels of Federal Responsibility for Higher Education. A Special Report and Recommendations by the Commission. 54 pages. $1.00 softbound.     

PROMISED CONTRIBUTIONS TO CHARITY AND MAIL SURVEY RESPONSES: REPLICATION WITH EXTENSION

The efficacy of four types of incentives for stimulating mailsurvey response rates was examined against a no-incentive controlgroup. Two of the incentives were enclosed personal cash rewards(25ø and $1), and two were promised rewards. Of the latter,one was an impersonal reward, the promise of a $1 contributionto a charity of the respondent's choice, and one a personalreward, the opportunity to win a $200 cash prize. As hypothesized,the personal cash rewards generated response rates that weresignificantly higher than that of the control group. Also ashypothesized, the charity-incentive group produced a responserate that was not significantly different from the control group.Discontinuation of the use of charity incentives should be seriouslyconsidered by future researchers. In contrast, the cash prizeincentive yielded a significantly greater response than thecontrol group, as expected, and was on par with the 25øgroup. Additional investigation of the use of cash prize incentivesis recommended.     

PHYSICIAN RESPONSE TO A MAILED SURVEY AN EXPERIMENT IN TIMING OF PAYMENT

This article reports the results of an experiment in obtainingphysician response to a mailed questionnaire. Each physicianwas eligible for a payment of $20. A randomly selected halfreceived the payment with their initial questionnaire and coverletter; half were told they would receive their payment afterthey completed and returned the questionnaire. The same mailand telephone followup procedures were used for both groups.Overall, prepayment had significant positive effects on responserates. This paper examines these effects in terms of responserates for various specialties, field efficiencies, cost, andrepresentativeness of the sample.     

Monetary incentives in support of academic achievement: results of a randomized field trial involving high-achieving, low-resource, ethnically diverse urban adolescents

Significant resources have been directed at understanding and alleviating the achievement gap in education. Most programs focused on this aim rely on a top-down approach, including funding for infrastructure improvement, curriculum development, class size, and teacher salaries. This article presents findings from a randomized field trial that evaluates a bottom-up approach in which high-achieving students of diverse racial and ethnic backgrounds from poor families are given monetary incentives to maintain their academic standing. The evaluation was designed to explore the role of monetary incentives as a mechanism for promoting resiliency in the face of poverty-related challenge. Discussion of what motivates students to learn is framed as a function of normal cognitive and socioemotional development in challenging environments. Evaluation findings indicate that monetary incentives are effective in promoting academic success to different degrees and for different reasons depending on students' perception of the meaning of the incentive in relation to their emergent identity.     

INFLUENCE OF AN INVITATION TO ANSWER BY TELEPHONE ON RESPONSE TO CENSUS QUESTIONNAIRES

An experimental test was made of whether completion rates fora census questionnaire could be improved by offering the optionof calling a toll-free number and providing the requested informationto an interviewer as an alternative to mailing it back. Conductedon a national probability sample of house holds, five treatmentpanels were created to examine the effect of delivering, indifferent ways, the invitation to respond by telephone or mail.Offering such invitations did not improve completion rates exceptwhen included with a follow-up letter that did not also includea replacement questionnaire.     

THE COMPOSITION AND CONSTRUCTION OF MONETARY AGGREGATES

An economic monetary aggregate is composed from a set of monetary goods that are at least weakly separable from other goods in the optimizing agent's utility function. We construct such an aggregate using a Divisia index number. We demonstrate that through the middle of the 1980s forecasts of the inflation rate based on our economic monetary aggregate are superior to forecasts based on the simple sum monetary aggregates M1 or M2.     

SURVEY QUESTIONS ABOUT THE FREQUENCY OF VAGUELY DEFINED EVENTS: THE EFFECTS OF RESPONSE ALTERNATIVES

Experimental research has shown that the choice of responsealternatives can influence responses to questions about thefrequency of vaguely defined target events (e.g., feeling annoyed);the set of response alternatives is treated as information thatcontributes to the interpretation of the question. In a seriesof split ballot experiments we investigate whether such effectsoccur in a large-scale survey context for sets of response alternativesthat might be used interchangeably by survey researchers. Thepredicted response shifts were found in our field experiments.Those presented with response alternatives discriminating atlow frequencies reported fewer of the target episodes than thosepresented with higher-frequency response alternatives. However,the size of the observed shifts varied from zero to 13 percentand depended on a number of characteristics of the survey, forexample, the presence of "priming" questions and the orientationof the response scales. Response alternatives are not neutraland therefore must be carefully considered when constructinga survey question.     

Goal-oriented agents in a market

We consider a market where “standard” risk-neutral agents coexist with “goal-oriented” agents who, in addition to the expected income, seek a high-enough monetary payoff (the “trigger”) to fulfill a goal. We analyze a two-sided one-to-one matching model where the matching between principals and agents and incentive contracts are endogenous. In any equilibrium contract, goal-oriented agents are matched with the principals with best projects and receive the trigger with positive probability. Moreover, goal and monetary incentives are complementary: goal-oriented agents receive stronger monetary incentives. Finally, we discuss policy interventions in relevant environments.     

EXPERIMENTS WITH THE MIDDLE RESPONSE ALTERNATIVE IN SURVEY QUESTIONS

A series of experiments shows (1) that people are significantlymore likely to select the middle response alternative on anissue when it is explicitly offered to them as part of the questionthan when it is omitted; (2) that merely mentioning that thereis a middle alternative, in the preface to the question, makesit more likely that respondents will select it, even thoughit is not offered to them as an explicit choice; (3) that theorder in which the middle alternative is presented in the question—inthe middle or last position—can make a significant differencein the results, but that a "recency bias" does not occur invariably,or consistently; and (4) that people who select a middle responsealternative when it is offered would not necessarily answerthe question in the same way as other respondents if forcedto choose sides on the issue.     

THE FISCAL FRAMEWORK OF MONETARY POLICY

This paper i11ustrates the importance of the fiscal framework for monetary analysis by discussing three separate issues. I begin by examining how the fiscal framework changes the macroeconomic equilibrium associated with different steady state rates of money growth. This includes a summary of research that I have presented elsewhere and comments on several additional aspects of the way in which the fiscal structure destroys the neutrality of monetary policy.
The second section deals with the short-run impact of changes in monetary policy. Here again the fiscal structure complicates the economy's response to monetary policy.
The final section looks at the effect of the fiscal structure on the central banks choice of monetary policies. Fiscal structures are likely to influence the policies adopted because they affect the costs and benefits of monetary policies.     

WHY THE 1936 LITERARY DIGEST POLL FAILED

The Literary Digest poll of 1936 holds an infamous place inthe history of survey research. Despite its importance, no empiricalresearch has been conducted to determine why the poll failed.Using data from a 1937 Gallup survey which asked about participationin the Literary Digest poll I conclude that the magazine's sampleand the response were both biased and jointly produced the wildlyincorrect estimate of the vote. But, if all of those who werepolled had responded, the magazine would have, at least, correctlypredicted Roosevelt the winner. The current relevance of thesefindings is discussed.     

DISPARATE IMPACT AND THE QUOTA DEBATES: Law, Labor Market Sociology, and Equal Employment Policies

Bringing sociological theory and research to bear on the "quota debates' dogging discussion of federal civil rights legislation in the early 1990s, this article highlights sociology's role in shaping employment law and shows how apparently technical legal arguments about allocating burdens of proof affect labor market resource allocation among the classes, races, and genders. Contrasting institutional-sociological with liberal-legal concepts of discrimination, the article shows why disparate impact theory has been the most sociological approach to Title VII enforcement. It also shows how disparate impact—a theory and method for establishing legally cognizable employment discrimination injurious to women and minorities—is, and is not, related to affirmative action—a policy encompassing a broad range of procedures intended to provide positive consideration to members of groups discriminated against in the past. Finally, a competing incentive framework is used to show that, although disparate impact creates some incentives for employers to adopt quota hiring, such incentives are counter-balanced by major incentives working against race- and gender-based quotas. Major counterincentives stem from disparate impact itself, from other aspects of equal employment law, and from organizational goals shaping business response to the legal environment.