The role of generalized trust and control in the employment of domestic help – An experimental case study for Germany and the UK

Abstract

This study analyses the role of generalized trust and control in households’ employment of domestic help. Applying a basic trust game with uncertainty, we argue that households differ in their estimate of the proportion of opportunistic domestic workers, variation which we ascribe to generalized trust. Households with low trust should estimate a lower proportion of non-opportunistic individuals, making them less willing to accept a domestic worker. Control, through direct supervision of the domestic worker, is assumed to serve as a substitute for trust and is expected to increase acceptance. We also consider the role of income, which we expect to alter the relation between the potential losses and gains associated with outsourcing. To test our hypotheses, we use a factorial survey conducted in 2020 in Germany and the UK ( N = 1877) which enables us to explore the robustness of the effects across countries. Experimental results show that individuals are more accepting of domestic outsourcing if they have higher trust, higher income, and if control of the worker is easily possible. Interaction effects reveal that the positive effect of higher trust and higher income is only relevant in lowcontrol situations. This suggest that households with higher trust and income have an advantage when it comes to fully utilizing the benefits of domestic help since costly control is not required. Consequently, the results substantially contribute to existing literature on explaining causes of social inequality in service use beyond financial restrictions and shed light on the complex interplay of trust and control.

Sociocultural barriers to outsourcing housework: Unraveling the non‐use of domestic services

“…Finally, in recent literature, the role of trust in outsourcing decisions has been examined to better understand why households refrain from hiring domestic services. With a theoretical basis in transaction cost theory (TCA) (Williamson, 1981), these studies emphasize the information asymmetry between households and domestic workers, leading to trust problems and uncertainties about the worker's future performance (Abraham et al, 2023; Nisic et al, 2023; Raz‐Yurovich, 2014). Not only is domestic service work mostly provided in the absence of the household members, but it is also generally challenging to monitor and assess its quality, creating the potential for opportunism and unsatisfactory work outcomes with regard to productivity, the quality of the services, and fraudulent intentions (Abraham et al, 2023; Raz‐Yurovich, 2014).…”

“…Finally, in recent literature, the role of trust in outsourcing decisions has been examined to better understand why households refrain from hiring domestic services. With a theoretical basis in transaction cost theory (TCA) (Williamson, 1981), these studies emphasize the information asymmetry between households and domestic workers, leading to trust problems and uncertainties about the worker's future performance (Abraham et al, 2023;Raz-Yurovich, 2014). Not only is domestic service work mostly provided in the absence of the household members, but it is also generally challenging to monitor and assess its quality, creating the potential for opportunism and unsatisfactory work outcomes with regard to productivity, the quality of the services, and fraudulent intentions (Abraham et al, 2023;Raz-Yurovich, 2014).…”

“…Empirical research has confirmed that the ability to monitor a domestic worker by being present during work increases the likelihood of outsourcing (Nisic, 2018) yet imposes time costs of monitoring. Likewise, households' willingness to trust strangers is positively associated with outsourcing housework (Abraham et al, 2023; de Ruijter & van der Lippe, 2009; Nisic, 2018). However, concerning attitudes toward outsourcing, one can expect that the anticipation of uncertainties and potential trust issues will cause distress for some households and evoke negative attitudes toward outsourcing, in particular, if the service worker is unattended.…”