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Performance Pay and Malnutrition

Author

Listed:
  • Singh, Prakarsh

    (Amazon)

  • Mitra, Sandip

    (Indian Statistical Institute)

Abstract

We carry out a randomized controlled experiment in West Bengal, India to test three separate performance pay treatments in the public health sector. Performance is judged on improvements in child malnutrition. We exogenously change wages of government employed child care workers through either absolute or relative incentives. We also test for the impact of high and low absolute incentives. Results show that high absolute incentives reduce severe malnutrition by 6.3 percentage points over three months. Result is consistent with a reported increase in protein-rich diet at home in the high absolute treatment. There are no significant effects on health outcomes of other incentive arms. Results remain robust to propensity score matching, reversion- to-mean and a placebo check.

Suggested Citation

  • Singh, Prakarsh & Mitra, Sandip, 2016. "Performance Pay and Malnutrition," IZA Discussion Papers 10084, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10084
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    References listed on IDEAS

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    More about this item

    Keywords

    performance pay; child malnutrition; absolute and relative incentives;
    All these keywords.

    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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