Arbeitspapier

The Ties That Bind Us: Social Networks and Productivity in the Factory

We use high frequency worker level productivity data from garment manufacturing units in India to study the effects of caste-based social networks on individual and group productivity when workers are complements in the production function but wages are paid at the individual level. Using exogenous variation in production line composition for almost 35,000 worker-days, we find that a 1 percentage point increase in the share of own caste workers in the line increases daily individual productivity by about 10 percentage points. The lowest performing worker increases her effort by more than 15 percentage points when the production line has a more homogeneous caste composition. Production externalities that impose financial costs due to worker's poor performance on co-workers within her social network can explain our findings. Our results suggest that even in the absence of explicit group-based financial incentives, social networks can be leveraged to improve both worker and group productivity.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 13711

Klassifikation
Wirtschaft
Dissertations (unclassified)
Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Human Capital; Skills; Occupational Choice; Labor Productivity
Thema
caste
social networks
labor productivity
assembly lines
India

Ereignis
Geistige Schöpfung
(wer)
Afridi, Farzana
Dhillon, Amrita
Sharma, Swati
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Afridi, Farzana
  • Dhillon, Amrita
  • Sharma, Swati
  • Institute of Labor Economics (IZA)

Entstanden

  • 2020

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