Expectations, Wage Hikes and Worker Voice

Achyuta Adhvaryu, Teresa Molina and Anant Nyshadham

The Economic Journal, 2022, vol. 132, issue 645, 1978-1993

Abstract: Enabling worker voice could improve worker retention and effort by providing workers the chance to improve their situation or an outlet to express discontent. We provide a test of this hypothesis via a randomised 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.

Date: 2022
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