Sep 21, 2012 Report No：12-09
An important question in labour economics is whether the presence in a work environment of friends or relations lowers or raises productivity. We examine the question using evidence from a simple field experiment in Uttar Pradesh, India with married wives and husbands. Teams of four are engaged to dig soil under the NREGA programme. In one treatment husbands and wives work together; in the other treatment they work in separate teams. We find that working with spouses is associated with significantly higher productivity.
|Keywords||household experiment; India; NREGA; labour productivity|