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Management and Shocks to Worker Productivity

Author

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  • Achyuta Adhvaryu
  • Namrata Kala
  • Anant Nyshadham

Abstract

We study how managers mitigate the negative impacts of environmental shocks. Pairing productivity data from a garment firm with granular measures of air pollution, we show that productivity suffers as a result of pollution shocks but that managers respond by reallocating particularly sensitive workers to improve worker-to-task matches, thus mitigating team productivity losses. Responses are smaller for more inattentive managers; these same managers are also least able to mitigate productivity declines. These patterns are confirmed by leveraging variation in opportunities for reallocation and comparing how close managers of differing attentiveness can get to the simulated production frontier by reallocating workers.

Suggested Citation

  • Achyuta Adhvaryu & Namrata Kala & Anant Nyshadham, 2022. "Management and Shocks to Worker Productivity," Journal of Political Economy, University of Chicago Press, vol. 130(1), pages 1-47.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/717046
    DOI: 10.1086/717046
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    Cited by:

    1. Katarzyna Bilicka & Daniela Scur, 2021. "Organizational capacity and profit shifting," CEP Discussion Papers dp1795, Centre for Economic Performance, LSE.
    2. Ran Du & Qiyun Fang & Ke Liu, 2023. "Landscape Fire and Entrepreneurial Activity: An Empirical Study Based on Satellite Monitoring Data," Land, MDPI, vol. 12(7), pages 1-22, July.
    3. Borgschulte, Mark & Molitor, David & Zou, Eric Yongchen, 2022. "Air Pollution and the Labor Market: Evidence from Wildfire Smoke," IZA Discussion Papers 15373, Institute of Labor Economics (IZA).
    4. Akerlof, Robert & Ashraf, Anik & Macchiavello, Rocco & Rabbani, Atonu, 2020. "Layoffs and productivity at a Bangladeshi sweater factor," The Warwick Economics Research Paper Series (TWERPS) 1293, University of Warwick, Department of Economics.
    5. Matthew Neidell & Nico Pestel, 2023. "Air pollution and worker productivity," IZA World of Labor, Institute of Labor Economics (IZA), pages 363-363, February.
    6. Czura, Kristina & Menzel, Andreas & Miotto, Martina, 2024. "Improved menstrual health and the workplace: An RCT with female Bangladeshi garment workers," Journal of Development Economics, Elsevier, vol. 166(C).
    7. Yu SHEN & Wenkai SUN, 2023. "Information and avoidance behaviour: The effect of air pollution disclosure on labour supply in China," International Labour Review, International Labour Organization, vol. 162(4), pages 665-686, December.
    8. Diego Battiston & Jordi Blanes i Vidal & Tom Kirchmaier & Katalin Szemeredi, 2023. "Peer pressure and manager pressure in organisations," CEP Discussion Papers dp1924, Centre for Economic Performance, LSE.
    9. Czura, Kristina & Menzel, Andreas & Miotto, Martina, 2024. "Improved menstrual health and the workplace: An RCT with female Bangladeshi garment workers," Journal of Development Economics, Elsevier, vol. 166(C).
    10. Ahmad, Husnain F. & Gibson, Matthew & Nadeem, Fatiq & Nasim, Sanval & Rezaee, Arman, 2022. "Forecasts: Consumption, Production, and Behavioral Responses," IZA Discussion Papers 15831, Institute of Labor Economics (IZA).
    11. Battiston, Diego Ezequiel & Blanes I Vidal, Jordi & Kirchmaier, Tom & Szemeredi, Katalin, 2023. "Peer pressure and manager pressure in organisations," LSE Research Online Documents on Economics 121319, London School of Economics and Political Science, LSE Library.
    12. Jacopo Ponticelli & Qiping Xu & Stefan Zeume, 2023. "Temperature and Local Industry Concentration," Working Papers 23-51, Center for Economic Studies, U.S. Census Bureau.

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