Measuring the Indirect Effects of Adverse Employer Behaviour on Worker Productivity: a field Experiment

A-Tier
Journal: Economic Journal
Year: 2020
Volume: 130
Issue: 632
Pages: 2546-2568

Authors (5)

Matthias Heinz (not in RePEc) Sabrina Jeworrek (Leibniz-Institut für Wirtschaf...) Vanessa Mertins (not in RePEc) Heiner SchumacherKU Leuven (not in RePEc) Matthias Sutter (Universität zu Köln)

Score contribution per author:

0.804 = (α=2.01 / 5 authors) × 2.0x A-tier

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

Abstract

We conduct a field experiment to study how worker productivity is affected if employers act adversely towards their co-workers. Our employees work for two shifts in a call centre. In our main treatment, we lay off some workers before the second shift. Compared to two control treatments, we find that the lay-off reduces the productivity of unaffected workers by 12%. We find suggestive evidence that this result is not driven by altered beliefs about the job or the management’s competence, but caused by the workers’ perception of unfair employer behaviour. The latter interpretation is confirmed in a prediction experiment with professional HR managers. Our results suggest that the price for adverse employer behaviour goes well beyond the potential tit for tat of directly affected workers.

Technical Details

RePEc Handle
repec:oup:econjl:v:130:y:2020:i:632:p:2546-2568.
Journal Field
General
Author Count
5
Added to Database
2026-01-25