Performance ranking triggers multiple social incentives for workers. On one hand, it offers status rewards to induce the workers to increase their effort. On the other, it introduces risks of social retribution from coworkers for outperforming them.
This study examines which worker and team characteristics lead to higher productivity in factories in a developing country using surveys and experiments with factory workers across multiple functions in Pakistan.
What accounts for the ubiquity of small vendors operating side-by-side in the urban centers of developing countries? Why don’t competitive forces drive some vendors out of the market?