Labour-augmenting technology and firm employment
This study conducted a randomised controlled trial with micro tailor shops in Burundi.
Abstract
The authors conducted a randomised controlled trial with 537 micro tailor shops in rural Burundi. Their intervention was a labour-augmenting technology: they converted manual sewing machines into automatic machines. They measured firm outcomes 3 and 6 months after the intervention. Their results demonstrated that labour-augmenting mechanisation can raise employment in low-income settings.
This paper is part of the Private Enterprise Development in Low-Income Countries (PEDL) programme.
Citation
Naso P and Ndayikesa M. ‘Labour-augmenting technology and firm employment’ PEDL Working Paper, 2025