Abstract: This talk examines informal redistribution in the form of work in small and medium enterprises in Kampala, Uganda, and its drivers. Using a field experiment, we show that employers and workers systematically choose giving/receiving work over cash transfers. Decisions imply a large willingness to pay for work on both sides of the labor market. Work redistribution choices are unaffected by the economic and training value of the task, and employers pay for zero marginal product work. Removing stakes in the game also does not affect decisions, ruling out signaling and relational personal benefits as drivers. Employers and workers motivate work redistribution mostly with fairness considerations and, secondly, with the psychosocial value of work for workers. Results appear externally valid, as giving via work predicts increased hiring in the firm, but it does not lead to higher revenues, sales, or profits, confirming that work redistribution is unlikely to be productive.

Bio: Elisa Macchi is an Assistant Professor of Economics at Brown University. Previously, she was a postdoctoral associate at MIT Economics department. She graduated from the University of Zurich in 2021. Her research is at the intersection of development economics and behavioral economics. In particular, her interest is in how the social environment influences the economic behaviors of individuals and organizations in poor countries. Her work has investigated various topics, including the impact of status signals on responses to situations with asymmetric information, the use of work arrangements as a means of redistribution, and the influence of image concerns on health-related behaviors.