Pros

Delegating the choice of wage (as well as effort) to the worker leads to higher earnings for both firms and workers as determined through laboratory experimentation.

Social comparisons concerning delegation rights affect workers’ behavior; this suggests that people intrinsically care about their social perception within the working environment.

When one is responsible for the determination of an outcome, as is encouraged by the delegation of responsibility to workers, one tends to behave more pro-socially (i.e. cooperatively).