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

36 Pages Posted: 28 May 2019 Last revised: 5 Sep 2021

See all articles by Achyuta Adhvaryu

Achyuta Adhvaryu

University of Michigan at Ann Arbor

Teresa Molina

University of Hawaii at Manoa

Anant Nyshadham

Boston College - Department of Economics

Date Written: May 2019

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

Adhvaryu, Achyuta and Molina, Teresa and Nyshadham, Anant, Expectations, Wage Hikes, and Worker Voice: Evidence from a Field Experiment (May 2019). NBER Working Paper No. w25866, Available at SSRN: https://ssrn.com/abstract=3394647

Achyuta Adhvaryu (Contact Author)

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

Teresa Molina

University of Hawaii at Manoa ( email )

2500 Campus Road
Honolulu, HI NA 96822
United States

Anant Nyshadham

Boston College - Department of Economics ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

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