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Meaning at Work

Author

Listed:
  • Ashraf, Nava

    (London School of Economics)

  • Bandiera, Oriana

    (London School of Economics)

  • Minni, Virginia

    (University of Chicago Booth School of Business)

  • Zingales, Luigi

    (University of Chicago)

Abstract

We evaluate a firm’s unusual, worker-centered, solution to the agency problem: enabling employees to reduce the cost of effort rather than pushing them with performance rewards. We randomize the roll-out of the firm’s “Discover Your Purpose” intervention among 2,976 white-collar employees and evaluate their outcomes over two years. We find that performance increases because the low performers either leave the firm or improve in their current jobs. The trade-off between meaning and pay flattens as those with low meaning and high pay leave the firm. Treatment also reshapes stated priorities and reduces gender gaps in preferences and behaviors, including uptake of parental leave. A cost-benefit analysis reveals high returns that are shared between the firm and the employees through higher bonuses. Finally, we show that observational data obscure these gains, causing firms to underestimate the intervention’s true value.

Suggested Citation

  • Ashraf, Nava & Bandiera, Oriana & Minni, Virginia & Zingales, Luigi, 2025. "Meaning at Work," IZA Discussion Papers 17904, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17904
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    More about this item

    Keywords

    meaning-making; worker performance; worker motivation; incentives;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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