Expectations, Wage Hikes, and Worker Voice: Evidence from a Field Experiment
Teresa Molina,
Anant Nyshadham,
Achyuta Adhvaryu
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 … Show more
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