Information Provision and Labor Efficiency: Evidence from Taxis in Singapore

59 Pages Posted: 20 Oct 2022 Last revised: 22 Aug 2023

See all articles by Sumit Agarwal

Sumit Agarwal

National University of Singapore

Shih-Fen Cheng

School of Computing and Information Systems, Singapore Management University

Jussi Keppo

National University of Singapore (NUS) - NUS Business School

Long Wang

Fudan University - School of Economics

Zoe Yang

The Chinese University of Hong Kong - CUHK Business School

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

Agarwal, Sumit and Cheng, Shih-Fen and Keppo, Jussi and Wang, Long and Yang, Yang, Information Provision and Labor Efficiency: Evidence from Taxis in Singapore (September 30, 2022). Available at SSRN: https://ssrn.com/abstract=4234268 or http://dx.doi.org/10.2139/ssrn.4234268

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

School of Computing and Information Systems, Singapore Management University ( email )

80 Stamford Road
178902
Singapore

Jussi Keppo

National University of Singapore (NUS) - NUS Business School ( email )

Mochtar Riady Building
15 Kent Ridge Drive
Singapore, 119245
Singapore

HOME PAGE: http://https://www.jussikeppo.com

Long Wang

Fudan University - School of Economics ( email )

600 Guoquan Road
Yangpu
Shanghai, Shanghai 200433
China

HOME PAGE: http://https://wanglong1988.weebly.com/

Yang Yang (Contact Author)

The Chinese University of Hong Kong - CUHK Business School ( email )

7/F, Cheng Yu Tung Building
12 Chak Cheung Street, Hong Kong
Hong Kong
Hong Kong

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