The majority of enterprises in many developing countries have no paid workers. This paper reports on a field experiment conducted in Sri Lanka that provided wage subsidies to randomly chosen microenterprises to test whether hiring additional labor would benefit such firms. In the presence of labor market frictions, a short-term subsidy could have a lasting impact on firm employment. Using 12 rounds of surveys to track dynamics four years after the...
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INFORMATION
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2016/12/19
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Document de travail de recherche sur les politiques
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WPS7924
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1
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1
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2016/12/19
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Disclosed
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Labor drops : experimental evidence on the return to additional labor in microenterprises
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Finance & Private Sector Development