Jeremia Stalder

We investigate work as informal redistribution, leveraging field experiments and firm-level survey data from Kampala, Uganda. Employers and workers consistently choose redistribution via work over cash transfers, revealing a willingness to pay for work. By randomizing work tasks—some designed to have zero marginal product—we find that production value does not explain these choices: employers pay for zero value work. These patterns are also inconsistent with other relational benefits, such as social image concerns or networking. Instead, motivations are normative. Experimental evidence reveals an internalized norm for redistribution via work rooted in incentive arguments on the demand side—as employers stop requiring work only when recipients have verifiable emergencies—and in reciprocity and dignity from earning on the supply side. The norm shapes both the organization and measurement of production: failing to account for redistribution via work makes firms appear significantly larger and less productive than they are.