The Effect of Exposure: Evidence from Spatial Choices in Nairobi

How much do people dislike opportunities they have never been exposed to, and why? We study how exposure affects work location decisions of casual workers. We offer short-term employment and randomize training locations to induce novel exposures. Participants sacrifice 22% of the median daily wage to avoid working in a location never visited before; one hour-long visit eliminates this premium. Workers anticipate two thirds of the effect exposure has on their later preferences. Results are most consistent with perceived fixed costs of exposure rather than sorting or quality uncertainty. Unfamiliar neighborhoods are also less likely to enter workers’ consideration sets.