Earned and unearned income: Experimental evidence on expenditures and labor supply in Malawi

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2021
Volume: 187
Issue: C
Pages: 33-44

Authors (2)

Ambler, Kate (not in RePEc) Godlonton, Susan (Williams College)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Though the differential impacts of earned and unearned income have long been of interest to economists and policymakers, the study of this question is often conflated by other differences between the income streams. We conduct a field experiment in Malawi in which we examine the differential short-term effect of earned and unearned income on the allocation of expenditures and labor supply, holding all other factors constant. All participants receive an equal size cash payment and make the same time investment; half are required to work, and half are not. Our main finding is that the work requirement results in a reallocation of labor supply away from household work in the very short term. Conversely, there is no evidence that the allocation of expenditures across categories is affected.

Technical Details

RePEc Handle
repec:eee:jeborg:v:187:y:2021:i:c:p:33-44
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25