Noise, Cognitive Function, and Worker Productivity

Abstract

Noisy workplaces common in low- and middle-income countries can impair workers' cognitive functions. However, whether this lowers earnings depends on the importance of these functions for productivity and whether workers understand these effects. I study these questions with two randomized experiments in Nairobi, Kenya. I find a noise increase of 7 dB reduces productivity in a textile training course by 3 percent, impairs cognitive function, but does not affect effort. I also find willingness to pay for quiet working conditions does not depend on whether pay depends on performance, suggesting participants are not aware that quiet would increase their productivity. (JEL D12, J24, J28, J31, J81, O15, Q53)

Topics & Concepts