The Daily Grind : Cash Needs and Labor Supply ∗

Abstract

We document three facts about the labor supply of Kenyan bicycle-taxi drivers: (1) drivers work more on days with higher cash needs; (2) the quitting hazard increases once the day’s need is reached; but (3) randomized cash payouts have no meaningful effect on labor supply. These results are consistent with models in which workers have reference-dependent… (More)

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