IDEAS home Printed from https://ideas.repec.org/a/aea/apandp/v108y2018p438-43.html
   My bibliography  Save this article

Workplace Signaling and Financial Commitment: Evidence from a Field Experiment

Author

Listed:
  • Emily Breza
  • Martin Kanz
  • Leora Klapper

Abstract

We provide evidence of strategic behavior in financial decisions that occur in the workplace and are observable to one's employer. We offer factory workers the opportunity to sign up for a commitment savings account that credibly signals the intention to remain employed with the firm. Workers are more likely to sign up when the account is endorsed by their employer and their decision is observed by the firm. An experiment with the firm's managers shows that the firm is more likely to invest in the human capital of workers with accounts, suggesting that financial commitment is rewarded by the employer.

Suggested Citation

  • Emily Breza & Martin Kanz & Leora Klapper, 2018. "Workplace Signaling and Financial Commitment: Evidence from a Field Experiment," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 438-443, May.
    • Handle: RePEc:aea:apandp:v:108:y:2018:p:438-43
    Note: DOI: 10.1257/pandp.20181011
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20181011
    Download Restriction: no
    File URL: https://www.aeaweb.org/articles/attachments?retrieve=UbH2avXNw2Z4yuMjjUqPwq55hS8Kf-75
    Download Restriction: no
    File URL: https://www.aeaweb.org/articles/attachments?retrieve=5GnpLqR98nx5hhxWX2YYl-ByMvWJ-K2s
    Download Restriction: no
    File URL: https://www.aeaweb.org/articles/attachments?retrieve=5CbPSJmMBvB49INm9iDQJ3VuRaarFymw
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kanz, Martin & Breza, Emily & Klapper, Leora F., 2020. "Learning to Navigate a New Financial Technology: Evidence from Payroll Accounts," CEPR Discussion Papers 15565, C.E.P.R. Discussion Papers.

    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:apandp:v:108:y:2018:p:438-43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.