Document Type
Honors Thesis
Abstract
Financial stress does not just affect people’s finances; it can change the way individuals behave. This project asks whether short-term financial difficulty damages worker performance or if alleviating it improves focus and accuracy. Using data from a field experiment in rural India, this study examine how labor payment timing variability is related to workers' productivity and error rates. The study randomized payment dates across a sample of employees, so that employees paid early can be compared to employees paid on standard or later dates. It investigates whether subsidy of payments relieves stress and enhances task performance by minimizing stress, enhancing mood, concentration, or decreasing anxiety. Generally, this study finds a relationship between economic stability and human performance and how even minimal economic interventions can bring about more productive and equitable workplaces. The evidence can guide employers in creating v more equitable pay frequencies while supporting policymakers who aim to enhance worker well-being.
Disciplines
Behavioral Economics | Income Distribution | International Business | Macroeconomics
Publication Date
Fall 2025
Language
English
Faculty Mentor of Honors Project
Ashish Sedai
License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Recommended Citation
Khowaja, Dua, "Do Financial Concerns Make Workers Less Productive?" (2025). 2025 Fall Honors Capstones Projects. 27.
https://mavmatrix.uta.edu/honors_fall2025/27
Included in
Behavioral Economics Commons, Income Distribution Commons, International Business Commons, Macroeconomics Commons
Comments
I would like to express my deepest gratitude to The University of Texas at Arlington Honors College for providing an environment that encourages curiosity, critical thinking and academic growth. Being part of the Honors College has been an invaluable experience that has shaped me both personally and intellectually. My sincere appreciation goes to my mentor, Dr. Ashish K. Sedai, for his continuous guidance, thoughtful feedback, and encouragement throughout this project. His mentorship has not only strengthened my understanding of economics but also inspire me to approach research with patience, precision, and purpose. I am truly grateful for his time, support, and belief in my work. I am also thankful to the Economics Department faculty for fostering a learning environment where ideas are challenged and refined. Their courses and discussions have played a significant role in developing my analytical thinking and passion for research. A heartfelt thank you to my family and friends for their unwavering support, understanding, and motivation throughout this journey. Their encouragement kept me grounded during long research hours and inspired me to keep striving for excellence. To my mom especially – thank you for your sacrifices, love, and constant belief in me. Lastly, I am grateful for every experience, challenge, and opportunity that has brought me to this point. This capstone represents not just an academic milestone but also a reflection of the support and kindness I have received along the way.