IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/84639.html
   My bibliography  Save this paper

The effect of one-on-one assistance on the compliance with labor regulation. A field experiment in extremely vulnerable settings

Author

Listed:
  • Cabrera, José María
  • Cid, Alejandro
  • Bernatzky, Marianne Bernatzky

Abstract

This is the first paper to analyze the effects of intense personal assistance on the compliance with labor regulation, within a population of deeply disadvantaged informal workers, using a field experiment. We randomly assign one-on-one assistance to these workers, and, within this treatment group, we randomly assign money to cover the cost of fulfilling the legal requirements to get a permit to work on the streets. One month after the intervention, we find that a worker who receives one-on-one assistance is three times more likely to comply with the legal documentation required by the government than a worker in the control group. We also find that a worker who receives both one-on-one assistance and cost coverage is four times more likely to comply with the legal requirements. The findings of this study shed light on strategies to help highly vulnerable workers to comply with labor regulations.

Suggested Citation

  • Cabrera, José María & Cid, Alejandro & Bernatzky, Marianne Bernatzky, 2016. "The effect of one-on-one assistance on the compliance with labor regulation. A field experiment in extremely vulnerable settings," MPRA Paper 84639, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:84639
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/84639/1/MPRA_paper_84639.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Roland G. Fryer Jr. & Lisa Kahn & Steven D. Levitt & Jörg L. Spenkuch, 2012. "The Plight of Mixed-Race Adolescents," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 621-634, August.
    2. Fajnzylber, Pablo & Maloney, William F. & Montes-Rojas, Gabriel V., 2011. "Does formality improve micro-firm performance? Evidence from the Brazilian SIMPLES program," Journal of Development Economics, Elsevier, vol. 94(2), pages 262-276, March.
    3. Miriam Bruhn, 2011. "License to Sell: The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 382-386, February.
    4. Rita Almeida & Pedro Carneiro, 2012. "Enforcement of Labor Regulation and Informality," American Economic Journal: Applied Economics, American Economic Association, vol. 4(3), pages 64-89, July.
    5. Suresh de Mel & David McKenzie & Christopher Woodruff, 2013. "The Demand for, and Consequences of, Formalization among Informal Firms in Sri Lanka," American Economic Journal: Applied Economics, American Economic Association, vol. 5(2), pages 122-150, April.
    6. De Giorgi, Giacomo & Rahman, Aminur, 2013. "SME’s registration: Evidence from an RCT in Bangladesh," Economics Letters, Elsevier, vol. 120(3), pages 573-578.
    7. Miriam Bruhn & David McKenzie, 2013. "Using administrative data to evaluate municipal reforms: an evaluation of the impact of Minas Fácil Expresso," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 5(3), pages 319-338, September.
    8. Natter, Martin & Kaufmann, Katharina, 2015. "Voluntary market payments: Underlying motives, success drivers and success potentials," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 149-157.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    case management; one-on-one assistance; randomized control trial; field experiment; labor regulation.;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:84639. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.