The daily grind: Cash needs and labor supply

Pascaline Dupas, Jonathan Robinson, Santiago Saavedra

Resultado de la investigación: Contribución a una revistaArtículorevisión exhaustiva

Resumen

The majority of people in developing countries are self-employed and can therefore set their own work hours. How do self-employed individuals motivate themselves to work hard day after day? We document four facts about the labor supply of Kenyan bicycle-taxi drivers: (1) drivers work more on days with higher cash needs; and (2) the quitting hazard increases once the driver earns enough to meet his day's need; but (3) the needs are not binding subsistence requirements; and (4) randomized cash payouts have no meaningful effect on labor supply. These results are consistent with models in which workers have reference-dependent preferences over earning targets.

Idioma originalInglés estadounidense
Páginas (desde-hasta)399-414
Número de páginas16
PublicaciónJournal of Economic Behavior and Organization
Volumen177
DOI
EstadoPublicada - sep 2020

All Science Journal Classification (ASJC) codes

  • Economía y econometría
  • Comportamiento organizativo y gestión de recursos humanos

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