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Hostel takeover: Living conditions, reference dependence, and the well-being of migrant workers

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  • Adhvaryu, Achyuta
  • Nyshadham, Anant
  • Xu, Huayu

Abstract

We report impacts of a randomized housing quality improvement intervention among Indian migrant workers. Despite modest improvements in conditions, respondents experienced a decline in satisfaction and a large increase in psychological distress as a result of treatment. In contrast, residents who faced the same treatment-induced variation in living conditions as the original sample, but who arrived after treatment had already been initiated, had increased satisfaction. Impacts on turnover echo these patterns. We interpret this as evidence of reference dependence: residents who were primed to expect larger-than-realized improvements in living conditions suffered utility losses, while exposed but unprimed residents experienced gains.

Suggested Citation

  • Adhvaryu, Achyuta & Nyshadham, Anant & Xu, Huayu, 2023. "Hostel takeover: Living conditions, reference dependence, and the well-being of migrant workers," Journal of Public Economics, Elsevier, vol. 226(C).
    • Handle: RePEc:eee:pubeco:v:226:y:2023:i:c:s0047272723001317
    DOI: 10.1016/j.jpubeco.2023.104949
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    More about this item

    Keywords

    Worker satisfaction; Amenities; Reference dependence; Personnel management; Migrant workers; Dormitories; India;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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