This paper investigates to what extent providing capital to firms generates direct economic benefits for workers. We conduct a systematic review of randomized interventions in low- and middle-income countries that boost firm capital through transfers or credit, finding ten suitable experiments. Using firm-level micro-data from eligible studies, we estimate a Bayesian Hierarchical Model to quantify the effects on firm revenue and worker outcomes. We find that workers benefit substantially from these interventions: on average, the wage bill rises proportionally with revenue, by about .15 of a standard deviation.
G²LM|LIC Synthesis Paper No. 15
Do Workers Benefit from Firm-Level Capital Interventions? Evidence from a Systematic Review
- Stefano Caria
- Brynde Kreft
- Desmond Fairall