Information Provision and Labor Efficiency: Evidence from Taxis in Singapore
59 Pages Posted: 20 Oct 2022 Last revised: 22 Aug 2023
Date Written: September 30, 2022
Abstract
This study examines the causal impact of real-time information provision on labor efficiency. Using approximately 257 million taxi trip records and extensive GPS trace data, we demonstrate that providing real-time demand information at airport terminals to airport-bound taxis enhances labor efficiency, corrects taxi supply misallocation, and benefits passengers and drivers. Specifically, information provision leads to a 16.3\% increase in waiting speed and a 10.77\% decrease in waiting time, significantly raising daily earnings and extending operational hours. These improvements contribute to a substantial annual reduction of USD \$4 million in fuel consumption and 5,463 metric tons in $CO_{2}$ and other pollutants.
Keywords: Information Provision, Labor Efficiency, Market Performance, Emission and Fuel Consumption
JEL Classification: R4, Q52, L91, D9
Suggested Citation: Suggested Citation