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Social ties at work and effort choice: experimental evidence from Tanzania
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SYSNO ASEP 0604597 Document Type J - Journal Article R&D Document Type Journal Article Subsidiary J Článek ve WOS Title Social ties at work and effort choice: experimental evidence from Tanzania Author(s) Chegere, M. (TZ)
Falco, P. (US)
Menzel, Andreas (NHU-C) ORCIDArticle number 103354 Source Title Journal of Development Economics. - : Elsevier - ISSN 0304-3878
Roč. 171, October (2024)Number of pages 18 s. Language eng - English Country NL - Netherlands Keywords firms ; hiring ; productivity OECD category Applied Economics, Econometrics Method of publishing Open access Institutional support NHU-C - Cooperatio-COOP UT WOS 001313278300001 EID SCOPUS 85202669762 DOI https://doi.org/10.1016/j.jdeveco.2024.103354 Annotation Many firms hire workers via social networks. Whether workers who are socially connected to their employers exert more effort on the job is an unsettled debate. We address this question through a novel experiment with small-business owners in Tanzania. Participants are paired with a worker who conducts a real-effort task, and receive a payoff that depends on the worker’s effort. Some business owners are randomly paired with workers they know, while others are paired with strangers. We find that being connected to one’s employer does not affect workers’ effort on average, but increases the effort of workers without children. Our results are consistent with workers having an altruistic drive in exerting effort when they work for someone they know, which fades away when their valuation of private income becomes stronger. Workplace NHU-C Contact Tomáš Pavela, pavela@cerge-ei.cz, Tel.: 224 005 122 Year of Publishing 2025 Electronic address https://doi.org/10.1016/j.jdeveco.2024.103354
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