This paper measures excess labor supply in equilibrium. We examine hiring shocks--which employ 24% of the labor force in external month-long jobs--in Indian local labor markets. In peak months, wages increase instantaneously and local aggregate employment declines. In lean months, consistent...

Economic activity in developing countries is labor-intensive, low-scale, and family run, with substantial family managerial time spent supervising hired labor. We use a randomized control trial that subsidizes access to rental equipment markets to study the impact of the adoption of mechanized...

Formal financial institutions can have far-reaching and long-lasting impacts on informal lending and information networks. We first study 75 villages in Karnataka, 43 of which were exposed to microfinance after we first collected detailed network data. Networks shrink more in exposed villages....

How should policymakers disseminate information: by broadcasting it widely (e.g., via mass media), or letting word spread from a small number of initially informed "seed" individuals? While conventional wisdom suggests delivering information more widely is better, we show theoretically and...