The long run effects of industrial work: Experimental evidence from Ethiopia”

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. One year impacts show that 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% and provided steadier hours. When barriers to self-employment were relieved, applicants preferred entrepreneurial to industrial labor. We are returning for a five year followup to see if these effects persist.