Rajshri (Raji) Jayaraman is an associate professor (with tenure) of economics. She received her Ph.D. in Economics from Cornell University and worked at Center for Economic Studies (CES) in Munich before joining the European School of Management and Technology (ESMT) in 2007. Raji’s fields of interest are development economics and labour economics. Her research examines how people respond to incentives, using micro data on individuals, schools and firms in India, Germany and Canada. She is currently serving as faculty lead for the full-time MBA programme at ESMT.
Analysing worker responses to a contract change
08 Aug 2016
Higher-powered incentives are generally believed to increase worker productivity. In the context of an Indian tea plantation, this column examines a contract change wherein baseline wages were increased and incentive piece rates were lowered or kept unchanged. It finds that output increased by 20-80% in the following month but fell to original levels thereafter. Possible explanations for the observed impact are explored.
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