Closing the regulatory gap: Experimental evidence on oversight and worker incentives

Weak enforcement of regulatory standards is widespread in low- and middle-income countries. Low firm capacity and standards inappropriate to local contexts imply that traditional punitive enforcement approaches may be counterproductive. We test the impact of a regulatory oversight intervention leveraging the soft power of meat inspectors in the context of 140 rural slaughterhouses in western Kenya. The intervention focused meat inspector attention on hygiene practices and was combined with training of workers and provision of basic equipment and supplies. Practices improved significantly relative to control facilities, but microbial contamination of meat did not. Outcomes were similar in a subset of treatment facilities where workers were additionally given a hygiene performance incentive. Higher volume of business in treatment facilities, which customers perceived as cleaner, suggests that retailers value less contaminated meat, but may counteract the effects of improved practices through cross-contamination and crowding.