I think our economy works the same way. I'm comparing two jobs that I have worked at. I must say the one with the negative incentives operated much better. Fear of being reprimanded or fired is what motivated us. In fact, people took advantage by taking more.
Equality definitely helps productivity.
I worked in a factory one summer . . OSHA was the most hated organization and the boss refused to come out of his office to interact with the workers. I felt like a machine as I worked. I plotted against this job every day I was there. This company took my personhood away 40 hours a week.