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Using preference parameter estimates to optimize public sector wage contracts: A field study in Pakistan

Andreoni, James and Callen, Michael and Hussain, Kurrar and Khan, Muhammad Yasir and Sprenger, Charles (2022) Using preference parameter estimates to optimize public sector wage contracts: A field study in Pakistan. Working Paper. UNSPECIFIED. (Submitted)

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We use estimates of time preferences to customize incentives for polio vaccinators in Lahore, Pakistan. We measure time preferences using intertemporal allocations of effort, and use these estimates to construct individually-tailored incentives. We evaluate the effect of matching contract terms to discounting parameters in a subsequent experiment with the same vaccinators. Our tailored policy is compared to alternatives that either rely on atheoretic reduced-form relationships for policy guidance or apply the same policy to all individuals. We find that contracts tailored to individual discounting outperform this range of policy alternatives.


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Item Type: Monograph (Working Paper)
Status: Submitted
CreatorsEmailPitt UsernameORCID
Andreoni, James
Callen, Michael
Hussain, Kurrar
Khan, Muhammad Yasiryasir.khan@berkeley.edumyk17
Sprenger, Charles
Monograph Type: Working Paper
Date: 27 April 2022
Date Type: Submission
Institution: University of Pittsburgh
Schools and Programs: Dietrich School of Arts and Sciences > Economics > Economics Working Papers
Refereed: No
Uncontrolled Keywords: Structural estimation, Out-of-sample prediction, Discounting, Present Bias
Other ID: JEL D1, D3, D90
Date Deposited: 06 May 2022 17:53
Last Modified: 06 May 2022 17:53


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