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We test whether increasing cash-on-hand raises the productivity of poor workers. Our motivation is psychological. Concerns about money can create mental burdens such as worry, stress, or sadness. These in turn could interfere with the ability to work effectively. We empirically test for this...
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We study a contract change for tea pluckers on an Indian plantation, with a higher government-stipulated baseline wage. Incentive piece rates were lowered or kept unchanged. Yet, in the following month, output increased by 20-80%. This response contradicts the standard model and several...
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A growing literature explores the impact of home-based versus office-based work. Differences in productivity may arise due to a treatment effect of the office or from workers with different abilities sorting into office or home work. We conduct an RCT in the data entry sector in India that...
Persistent link: https://www.econbiz.de/10014322901
The idea that worker utility is affected by co-worker wages has potentially broad labor market implications. In a month-long experiment with Indian manufacturing workers, we randomize whether co-workers within production units receive the same flat daily wage or different wages (according to...
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