‘Good job!’ the impact of positive and negative feedback on performance

Abstract

We analyze the effect of positive and negative feedback on professional performance. For this, we exploit a unique data source in which quasi-random, naturally occurring variations within subjective ratings serve as positive and negative feedback. Our analysis suggests 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 distinct environments and for different cultural backgrounds, experiences, and genders of the feedback recipients. The favorable impact of positive feedback is short-term, repeatable, and stronger for highly relevant tasks.