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The Psychosocial Value of Employment: Evidence from a Refugee Camp

Author

Listed:
  • Reshmaan Hussam
  • Erin M. Kelley
  • Gregory Lane
  • Fatima Zahra

Abstract

Employment may be important to well-being for reasons beyond its role as an income source. This paper presents a causal estimate of the psychosocial value of employment in refugee camps in Bangladesh. We involve 745 individuals in a field experiment with three arms: a control arm, a weekly cash arm, and an employment arm of equal value. Employment raises psychosocial well-being substantially more than cash alone, and 66 percent of the employed are willing to forgo cash payments to continue working temporarily for free. Despite material poverty, those in our context both experience and recognize a nonmonetary, psychosocial value to employment.

Suggested Citation

  • Reshmaan Hussam & Erin M. Kelley & Gregory Lane & Fatima Zahra, 2022. "The Psychosocial Value of Employment: Evidence from a Refugee Camp," American Economic Review, American Economic Association, vol. 112(11), pages 3694-3724, November.
    • Handle: RePEc:aea:aecrev:v:112:y:2022:i:11:p:3694-3724
    DOI: 10.1257/aer.20211616
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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