Labor drops: Experimental evidence on the return to additional labor in microenterprises
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 treatm...
| Hoofdauteurs: | , , |
|---|---|
| Formaat: | Journal article |
| Gepubliceerd in: |
American Economic Association
2019
|
| _version_ | 1826259794572345344 |
|---|---|
| author | de Mel, S McKenzie, D Woodruff, C |
| author_facet | de Mel, S McKenzie, D Woodruff, C |
| author_sort | de Mel, S |
| collection | OXFORD |
| description | 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 sales either during or after the subsidy period. There is some heterogeneity in effects; the subsidies have more durable effect on manufacturers. |
| first_indexed | 2024-03-06T18:55:25Z |
| format | Journal article |
| id | oxford-uuid:11a9fe8f-275e-43d5-ae4c-717ca5361ced |
| institution | University of Oxford |
| last_indexed | 2024-03-06T18:55:25Z |
| publishDate | 2019 |
| publisher | American Economic Association |
| record_format | dspace |
| spelling | oxford-uuid:11a9fe8f-275e-43d5-ae4c-717ca5361ced2022-03-26T10:03:34ZLabor drops: Experimental evidence on the return to additional labor in microenterprisesJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:11a9fe8f-275e-43d5-ae4c-717ca5361cedSymplectic Elements at OxfordAmerican Economic Association2019de Mel, SMcKenzie, DWoodruff, CA 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 sales either during or after the subsidy period. There is some heterogeneity in effects; the subsidies have more durable effect on manufacturers. |
| spellingShingle | de Mel, S McKenzie, D Woodruff, C Labor drops: Experimental evidence on the return to additional labor in microenterprises |
| title | Labor drops: Experimental evidence on the return to additional labor in microenterprises |
| title_full | Labor drops: Experimental evidence on the return to additional labor in microenterprises |
| title_fullStr | Labor drops: Experimental evidence on the return to additional labor in microenterprises |
| title_full_unstemmed | Labor drops: Experimental evidence on the return to additional labor in microenterprises |
| title_short | Labor drops: Experimental evidence on the return to additional labor in microenterprises |
| title_sort | labor drops experimental evidence on the return to additional labor in microenterprises |
| work_keys_str_mv | AT demels labordropsexperimentalevidenceonthereturntoadditionallaborinmicroenterprises AT mckenzied labordropsexperimentalevidenceonthereturntoadditionallaborinmicroenterprises AT woodruffc labordropsexperimentalevidenceonthereturntoadditionallaborinmicroenterprises |