Tied Labour, Savings and Rural Labour Market Wages: Evidence from a Framed Field Experiment
| Autor: | Haki Pamuk, Aisha Nanyiti, Erwin Bulte |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
Labour economics tied labour Casual Consumption smoothing rural labour markets Context (language use) WASS Development Ontwikkelingseconomie 060104 history Development Economics 0502 economics and business Economics 0601 history and archaeology International Policy 050207 economics Productivity Internationaal Beleid Consumption (economics) savings 05 social sciences 06 humanities and the arts Product (business) Diminishing returns Rural area |
| Zdroj: | Journal of African Economies, 28(4), 435-454 Journal of African Economies 28 (2019) 4 |
| ISSN: | 0963-8024 |
| Popis: | How does the introduction of tied labour or a saving product affect labour market decisions and wages in rural agricultural labour markets? We develop a theoretical model of labour tying that incorporates diminishing marginal returns to consumption and inequality (behindness) aversion in the context of a rural agricultural labour market with seasonally fluctuating demand for labour, and test model predictions using a framed field experiment (modified ultimatum game) in rural Uganda. Our main findings are that (1) wages fluctuate with productivity, (2) access to tied contracts decreases wages for casual labour and (3) access to a saving technology does not improve wages for tied labour. Consistent with model predictions and earlier theory, we empirically find that income for workers goes down (and income for landlords goes up) if an institutional innovation enables consumption smoothing by workers (tied contracts or a saving technology). |
| Databáze: | OpenAIRE |
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