Toward an understanding of the welfare effects of nudges: Evidence from a field experiment in the workplace

E.H. Bulte, J.A. List, Daan van Soest

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Social scientists have recently explored how framing of gains and losses affects productivity. We conducted a field experiment in peri-urban Uganda, and compare output levels across 1000 workers over isomorphic tasks and incentives, framed as either losses or gains. We find that loss aversion can be leveraged to increase the productivity of labor. The estimated welfare costs of using the loss contract are quite modest – perhaps because the loss contract is viewed as a (soft) commitment device.
Original languageEnglish
JournalEconomic Journal
DOIs
Publication statusE-pub ahead of print - May 2020

Keywords

  • nudge
  • reference-dependent preferences
  • effort
  • labor productivity
  • field experiment
  • commitment
  • claw-back

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