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

Labour-augmenting technology and firm employment

Updates to this page

Published 24 October 2025