Source · aikyam school

The Impact of Commitment Contracts on Workplace Productivity in India

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The Impact of Commitment Contracts on Workplace Productivity in India

J-PAL evaluation summary · J-PAL

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Dominated Penalty Contracts

"If workers met their targets, they received the standard rate per field entered; if they fell short of the target, they received half the standard rate."

Employee-Defined Commitment Contracts

"When given the opportunity to select their own work targets, workers selected positive targets approximately 28 percent of the time."

Payday-Driven Effort Spikes

"On average, workers with an above-average payday effect were 13.8 percentage points more likely to select a positive target and select targets that were 351 fields higher."

Peer Productivity Spillovers

"Workers who had a peer with above average productivity increased their own productivity by 5 percent."

Sophistication and Learning in Self-Control

"After two months of experience, these same workers were 20.6 percentage points (73 percent) more likely to voluntarily select dominated contracts than workers with low payday effects."

Temporal Distance in Goal Setting

"Following the same model as the morning targets, this option allowed workers to choose their targets the evening prior to the workday, when production uncertainty was higher..."