Evidence on quality spillovers from speed enhancing policies in the workplace

Abstract

AbstractEmpirical researchers often consider a single determinant of labor productivity: speed. This paper asks whether they are neglecting spillovers on output quality. Using high‐frequency data on the speed and quality of strawberry harvesters' work, we offer novel evidence that two distinct workplace policies associated with increases in worker speed lead to similar decreases in the quality of their work. We find that both peer speed and wage changes boost worker speed and lower output quality; 10 percent increases in speed are associated with reductions in quality on the order of 1.5–1.7 percent.