Indian sugar cane farmers’ cognitive performance is significantly lower before harvest, when their finances are stretched thin. Their performance improves after harvest, when financial concerns are alleviated. This result cannot be attributed to obvious factors, such as nutrition and stress levels.

Mani et al (2013) Science Magazine


In a firm in Kenya workers from different ethnicities had to work in the same group. When they were getting paid according to individual production, they would sabotage those of different ethnicities, leading to lower productivity. When the payments were based on the production of the whole team, sabotaging decreased and overall productivity rose.

Hjort (forthcoming) Quarterly Journal of Economics