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Measuring the Indirect Effects of Adverse Employer Behaviour on Worker Productivity

A field Experiment

Bibliographic Data

ID9707960
AuthorsMatthias Heinz (0000-0003-3690-926X, University of Cologne, corresponding author), Sabrina Jeworrek (0000-0001-7967-9383, Halle Institute for Economic Research and Otto von Guericke University Magdeburg), Vanessa Mertins (0000-0002-2843-7381, University of Vechta), Heiner Schumacher (0000-0002-2259-6728, KU Leuven), Matthias Sutter (0000-0002-6143-8706, Max Planck Institute for Research on Collective Goods, Bonn, University of Cologne, University of Innsbruck, and ECONtribute)
Year2020
Volume130
Issue632
Pages2546-2568
Publication date2020-11-23
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (PUBLISHER • GB)
DOI10.1093/ej/ueaa038
OpenAlexW3014962773
LanguageEN
Citations received7
References cited38

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

Actuarial science · Adverse selection · Business · Competence (human resources · Control (management · Demographic economics · Economic growth · Economics · Labour economics · Management · Perception · Productivity · Experimental Behavioral Economics Studies · Job Satisfaction and Organizational Behavior · Psychology · Psychology of Social Influence · Social Psychology

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Unique citing works7
Citations per year1,75
Citation span2022 - 2026 (5)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 7

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