Engaging in productive activities may yield benefits that go beyond earning a wage or income, such as improved psychosocial wellbeing. This study empirically tests this hypothesis among Rohingya refugees living in Bangladesh. 745 individuals participated in the randomized study and were assigned to one among three groups: a 'work-task' group which was compensated for engaging in a small task, a ‘cash’ group that received a cash equivalent without needing to work, and a ‘comparison’ group that did not receive either. Findings show that individuals who were engaged in this activity had substantially better psychosocial well-being than individuals who only received cash.