Labour Markets

Incentives and Productivity: Work Groups vs. Production Lines in Pakistani Electric Fan Production

Project members:
Theresa Chaudhry, Lahore School of Economics
Christopher Woodruff, University of Oxford
RAs: Muhammad Haseeb, University of Warwick,
ZuniaTirmazee, Lahore School of Economics
UmairAyaz, Georgia State University

The fan sector is an important source of employment in the region around Gujrat in the Punjab province of Pakistan. Moreover, it is representative of other light engineering sectors in Pakistan. Exporting has developed as an important market for fans produced in Pakistan.
The project has been developed under the firm capabilities programme of the International Growth Centre (IGC). The authors have attempted to test whether short-term financial incentives can be used to decrease worker absenteeism in one of Gujrat’s leading fan factories.(The working paper is available here: )