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Expectations, Wage Hikes, and Worker Voice: Evidence from a Field Experiment

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  • Achyuta Adhvaryu
  • Teresa Molina
  • Anant Nyshadham

Abstract

Hirschman's (1970) seminal thesis that enabling worker “voice” prevents exit from the employment relationship has played a foundational role in labor economics. We provide the first experimental test of this hypothesis in a real-world setting via a randomized controlled trial in Indian garment factories. Just after what proved to be a disappointing wage hike, workers were chosen at random to participate in an anonymous survey in which they were asked for feedback on job conditions, supervisor performance, and overall job satisfaction. Enabling voice in this manner reduced turnover and absenteeism after the hike, particularly for the most disappointed workers.

Suggested Citation

  • Achyuta Adhvaryu & Teresa Molina & Anant Nyshadham, 2019. "Expectations, Wage Hikes, and Worker Voice: Evidence from a Field Experiment," NBER Working Papers 25866, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:25866
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    Cited by:

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    2. 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.
    3. Roth, Christopher & Hager, Anselm & , & Stegmann, Andreas, 2021. "Voice and Political Engagement: Evidence From a Natural Field Experiment," CEPR Discussion Papers 16839, C.E.P.R. Discussion Papers.
    4. Teresa Molina & Mari Tanaka, 2023. "Globalization and Female Empowerment: Evidence from Myanmar," Economic Development and Cultural Change, University of Chicago Press, vol. 71(2), pages 519-565.

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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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