The Impacts of Industrial and Entrepreneurial Work on Income and Health: Experimental Evidence from Ethiopia
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Abstract
Working with five Ethiopian firms, we randomized applicants to an industrial job offer, an "entrepreneurship" program of $300 plus business training, or control status. Industrial jobs offered more and steadier hours but low wages and risky conditions. The job offer doubled exposure to industrial work but, since most quit within months, had no impact on employment or income after a year. Applicants largely took industrial work to cope with adverse shocks. This exposure, meanwhile, significantly increased health problems. The entrepreneurship program raised earnings 33 percent and provided steadier hours. When barriers to self-employment were relieved, applicants preferred entrepreneurial to industrial labor.Citation
Blattman, Christopher, and Stefan Dercon. 2018. "The Impacts of Industrial and Entrepreneurial Work on Income and Health: Experimental Evidence from Ethiopia." American Economic Journal: Applied Economics, 10 (3): 1-38. DOI: 10.1257/app.20170173Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- I12 Health Behavior
- J23 Labor Demand
- J28 Safety; Job Satisfaction; Related Public Policy
- J81 Labor Standards: Working Conditions
- L26 Entrepreneurship
- M53 Personnel Economics: Training
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