Learning by Driving: Evidence from Taxi Driver Wages in Singapore

38 Pages Posted: 8 Dec 2015 Last revised: 6 Nov 2016

See all articles by Sumit Agarwal

Sumit Agarwal

National University of Singapore

Shih-Fen Cheng

Singapore Management University - School of Information Systems

Jussi Keppo

National University of Singapore - NUS Business School

Ryoko Sato

National University of Singapore (NUS)

Date Written: November 5, 2016

Abstract

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

Agarwal, Sumit and Cheng, Shih-Fen and Keppo, Jussi and Sato, Ryoko, Learning by Driving: Evidence from Taxi Driver Wages in Singapore (November 5, 2016). Available at SSRN: https://ssrn.com/abstract=2699970 or http://dx.doi.org/10.2139/ssrn.2699970

Sumit Agarwal

National University of Singapore ( email )

15 Kent Ridge Drive
Singapore, 117592
Singapore
8118 9025 (Phone)

HOME PAGE: http://www.ushakrisna.com

Shih-Fen Cheng

Singapore Management University - School of Information Systems ( email )

80 Stamford Road
Singapore, 178902
Singapore

HOME PAGE: http://www.mysmu.edu/faculty/sfcheng/

Jussi Keppo (Contact Author)

National University of Singapore - NUS Business School ( email )

1 Business Link
Singapore, 117592
Singapore

Ryoko Sato

National University of Singapore (NUS) ( email )

Bukit Timah Road 469 G
Singapore, 117591
Singapore

Register to save articles to
your library

Register

Paper statistics

Downloads
161
rank
173,822
Abstract Views
1,010
PlumX Metrics