Learning by Driving: Evidence from Taxi Driver Wages in Singapore
38 Pages Posted: 8 Dec 2015 Last revised: 6 Nov 2016
Date Written: November 5, 2016
We use a unique dataset from a Singaporean taxi fleet consisting of 6,663 drivers with 23 months of daily work routines to test if taxi drivers exhibit learning by doing (LBD). We find strong evidence of LBD. Next, we document the channels of learning: drivers learn the most through technology (booking) optimization, followed by locational (where) optimization. We show that drivers with consistent wage growth utilize these technological and locational channels more than others. We also discuss the implication of our findings for taxi markets experiencing a rise in booking technology (e.g. Uber), which has recently drawn the interest of policymakers.
Keywords: Learning-by-doing, Wages, Labor Supply, Taxi Drivers
JEL Classification: J22, B49
Suggested Citation: Suggested Citation