S1 Ep8: The effects of pay inequality

VoxDev Development Economics

08-09-2018 • 3 mins

The idea that worker utility is affected by co-worker wages has potentially broad labour market implications. In a month-long experiment with Indian manufacturing workers, in her work with Emily Breza and Yogita Shamdasani (Breza et al. 2017) Supreet Kaur establishes the effects of pay inequality on co-workers within production units. They find that pay inequality reduces output, as well as attendance by 10%. Pay disparity also lowers co-workers' ability to cooperate. However, when workers can clearly observe productivity differences, pay inequality has no discernible effect on output, attendance, or group cohesion.

You Might Like

StarTalk Radio
StarTalk Radio
Neil deGrasse Tyson
The Naked Scientists Podcast
The Naked Scientists Podcast
The Naked Scientists
Paranormal Mysteries Podcast
Paranormal Mysteries Podcast
Paranormal Mysteries | Unexplained Supernatural Stories
Science Weekly
Science Weekly
The Guardian
Farming Today
Farming Today
BBC Radio 4
That UFO Podcast
That UFO Podcast
That UFO Podcast
Sasquatch Chronicles
Sasquatch Chronicles
Sasquatch Chronicles - Bigfoot Encounters
Hidden Brain
Hidden Brain
Hidden Brain, Shankar Vedantam
Radiolab
Radiolab
WNYC Studios