Using social connections and financial incentives to solve coordination failure: A quasi-field experiment in India's manufacturing sector

A-Tier
Journal: Journal of Development Economics
Year: 2020
Volume: 144
Issue: C

Authors (4)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Production processes are often organized in teams, yet there is limited evidence on whether and how social connections and financial incentives affect productivity in tasks that require coordination among workers. We simulate assembly line production in a lab-in-the-field experiment in which workers exert real effort in a minimum-effort game in teams whose members are either socially connected or unconnected and are paid according to the group output. We find that group output increases by 18%, and coordination improves by 30–39% when workers are socially connected with their co-workers. These findings can plausibly be explained by the higher levels of pro-social motivation between co-workers in socially connected teams.

Technical Details

RePEc Handle
repec:eee:deveco:v:144:y:2020:i:c:s0304387820300201
Journal Field
Development
Author Count
4
Added to Database
2026-01-24