Foreign, Commonwealth & Development Office
Foreign, Commonwealth & Development Office
10/24/2025 | Press release | Distributed by Public on 10/24/2025 09:23
Labour-augmenting technology and firm employment
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
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