In Simple Words
Adjusting labor supply on the intensive margin in a developing market is like a freelance handyman who cannot change his hourly rate or get a full-time contract; instead, he increases his total earnings by booking and working additional full workdays throughout the week whenever jobs become available.
Young male job applicants in Malawi
- Without short work experience
- Reference days-worked outcome
- With short work experience
- About one more day worked weekly
Eight-month instrumental-variable estimate from randomized fallback-job chances. Five days of initial work; result concerns days, not hours.
See source →Research question
In low-income labor markets characterized by severe underemployment, workers rarely have opportunities to alter their labor supply through hourly wage adjustments or full-time salaried agreements. Instead, labor supply adjustments occur primarily along discrete daily work schedules.
Participants
N = 227 urban Malawian male job seekers with secondary education in Lilongwe, Malawi (national benchmark sample: urban educated men working an average of 23.4 hours per week).
Study Design
Observational baseline survey combined with instrumental variables (IV) estimation evaluating the impact of short-term employment exposure on weekly days worked.
Results
Urban educated men worked only 23.4 hours per week conditional on employment; acquiring 5 days of work experience increased labor supply on the intensive margin by 1 additional day worked per week on average (p < 0.10).
Takeaway
Design active labor market policies and wage evaluations around days worked per week rather than hourly compensation rates in underemployed urban contexts.
Source and citation
See source →Read alongside the research
Plain-English glossary
Original explanations, informed by the references below. Examples are illustrations, not data from the studies above. The research text stays unchanged.
- Baseline
The starting measurements in a study. Researchers use these to compare what participants were like at the start with what happens later.
ExampleBefore a training programme starts, researchers measure workers’ earnings. That first measurement is the baseline.
GET-IT glossary · Baseline characteristics ↗Read more about baseline →