Abstract:

This paper studies the differential allocation of opportunities in task assignment as a source of productivity heterogeneity among employees. Specifically, it examines the mechanisms by which assigning employees to perform the same task under a high- vs. low-opportunity context affects their future productivity. Using transaction data from a restaurant chain, we compare employees’ productivity before and after a temporary assignment to a high-opportunity context – serving tables in a high-traffic section with potential for higher sales and tips. We find that the temporary assignment led to an increase in the servers’ hourly sales in subsequent periods after they were assigned back to low-opportunity sections. Further statistical analyses and interviews suggest that the productivity boost appears to be caused by a combination of factors including skill discovery, learning and motivation enhancement.

General information:

Attendance to this seminar is possible by invitation only. Please send an e-mail to secbs-abs@uva.nl if your are interested in attending this seminar.