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Elena Cettolin
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Publisher: Journals Gateway
The Review of Economics and Statistics 1–45.
Published: 25 November 2024
Abstract
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We report the results of a cost-effective intervention to improve workers' performance in small cassava processing firms in Ghana. We train workers to track their daily output and then randomly assign a sub-sample to set daily production goals. Achieving or missing a goal does not carry monetary consequences. Goal setting increases workers' output by 16%, their productivity by 8% and the average product of labor in firms by 13%. Goal setting is particularly effective for piece-rate workers, increasing their output by 32% and productivity by 24%. While not conclusive, evidence suggests that goals serve as a self-regulation device.
Includes: Supplementary data