'Good job!' The impact of positive and negative feedback on performance

Abstract

We analyze the causal impact of positive and negative feedback on professional performance. We exploit a unique data source in which quasi-random, naturally occurring variations within subjective ratings serve as positive and negative feedback. The analysis shows that receiving positive feedback has a favorable impact on subsequent performance, while negative feedback does not have an effect. These main results are found in two different environments and for distinct cultural backgrounds, experiences, and gender of the feedback recipients. The findings imply that managers should focus on giving positive motivational feedback.