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Labor drops: Experimental evidence on the return to additional labor in microenterprises

Abstract:

A field experiment in Sri Lanka provided wage subsidies to randomly chosen microenterprises to test whether hiring additional labor benefits such firms, and whether a short-term subsidy can have a lasting impact on firm employment. Using 12 rounds of surveys to track dynamics four years after treatment, we find that firms increased employment during the subsidy period. Treated firms were more likely to survive, but there was no lasting impact on employment, and no effect on profitability or s...

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Publication status:
Published
Peer review status:
Peer reviewed
Version:
Accepted Manuscript

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Publisher copy:
10.1257/app.20170497

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Institution:
University of Oxford
Division:
Social Sciences Division
Department:
International Development
Oxford college:
Wolfson College
Role:
Author
Department for International Development More from this funder
Knowledge for Change Trust Fund More from this funder
Diagnostic Facility for Shared Growth Trust Fund More from this funder
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Publisher:
American Economic Association Publisher's website
Journal:
American Economic Journal: Applied Economics Journal website
Volume:
11
Issue:
1
Pages:
202-235
Publication date:
2019-01-03
Acceptance date:
2018-02-14
DOI:
ISSN:
1945-7782
Pubs id:
pubs:828408
URN:
uri:11a9fe8f-275e-43d5-ae4c-717ca5361ced
UUID:
uuid:11a9fe8f-275e-43d5-ae4c-717ca5361ced
Local pid:
pubs:828408

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