Corpus ID: 150378531

Does Financial Strain Lower Worker Productivity?∗

  title={Does Financial Strain Lower Worker Productivity?∗},
  author={Supreet Kaur},
This paper empirically tests for a direct causal impact of financial strain on worker productivity. We randomize the timing of income receipt among Indian workers who earn piece rates for manufacturing tasks: some workers receive their wages on earlier dates, altering when cash constraints are eased while holding overall wealth constant. Workers increase productivity by 5.3% on average in the days after cash receipt. The impacts are concentrated among poorer workers in the sample, who increase… Expand

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