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The Psychosocial Value of Employment

Author

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

Abstract

In settings where an individual’s labor choices are constrained, the inability to work may generate psychosocial harm. This paper presents a causal estimate of the psychosocial value of employment in the Rohingya refugee camps of Bangladesh. We engage 745 individuals in a field experiment with three arms: (1) a control arm, (2) a weekly cash arm, and (3) a gainful employment arm, in which work is offered and individuals are paid weekly the approximate equivalent of that in the cash arm. We find that employment confers significant psychosocial benefits beyond the impacts of cash alone, with effects concentrated among males. The cash arm does not improve psychosocial wellbeing, despite the provision of cash at a weekly amount that is more than twice the amount held by recipients in savings at baseline. Consistent with these findings, we find that 66% of those in our work treatment are willing to forego cash payments to instead work for free. Our results have implications for social protection policies for the unemployed in low income countries and refugee populations globally.

Suggested Citation

  • Reshmaan N. Hussam & Erin M. Kelley & Gregory V. Lane & Fatima T. Zahra, 2021. "The Psychosocial Value of Employment," NBER Working Papers 28924, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:28924
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    Cited by:

    1. María Laura Alzua & Natalia Cantet & Ana C. Dammert & Damilola Olajide, 2023. "The Wellbeing Effects of an Old Age Pension: Experimental Evidence for Ekiti State in Nigeria," CEDLAS, Working Papers 0322, CEDLAS, Universidad Nacional de La Plata.
    2. Andersen, Asbjørn G. & Kotsadam, Andreas & Somville, Vincent, 2022. "Material resources and well-being — Evidence from an Ethiopian housing lottery," Journal of Health Economics, Elsevier, vol. 83(C).
    3. Siddique, Abu & Islam, Asad & Mozumder, Tanvir Ahmed & Rahman, Tabassum & Shatil, Tanvir, 2022. "Forced Displacement, Mental Health, and Child Development: Evidence from the Rohingya Refugees," SocArXiv b4fc7, Center for Open Science.

    More about this item

    JEL classification:

    • 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
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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