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The Impacts of Industrial and Entrepreneurial Work on Income and Health: Experimental Evidence from Ethiopia

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  • Christopher Blattman
  • Stefan Dercon

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.

Suggested Citation

  • Christopher Blattman & Stefan Dercon, 2018. "The Impacts of Industrial and Entrepreneurial Work on Income and Health: Experimental Evidence from Ethiopia," American Economic Journal: Applied Economics, American Economic Association, vol. 10(3), pages 1-38, July.
    • Handle: RePEc:aea:aejapp:v:10:y:2018:i:3:p:1-38
    Note: DOI: 10.1257/app.20170173
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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