Analyzing manager and worker survey data from Better Work Vietnam Monitoring and Evaluation collected between January 2010 and August 2012, working conditions are found to have a significant positive impact on global life assessment and measures of depression and traumatic stress. The conjecture that factory managers may not be offering a cost-minimizing configuration of compensation and workplace amenities is then tested. There exists significant deviations of manager perceptions of working conditions from those of workers and these deviations significantly impact a worker’s perceptions of wellbeing and indicators of mental health. Such deviations may lead the factory manager to under-provide certain workplace amenities relative to the cost-minimizing configuration.
Domat, G.; Adler, P.; Dehejia, R.; Brown, D.; Robertson, R. Do Factory Managers know what Workers Want? Manager-Worker Information Asymmetries and Pareto Optimal Working Conditions. The World Bank, Washington DC, USA (2013) ii + 38 pp.