IGL database (beta)

Year Title Short summary Country Author
2017 Taking the Leap: The Determinants of Entrepreneurs Hiring their First Employee

For young firms, the effect of business training on hiring a first employee remains ambiguous, and more research is needed to understand the relationships behind job creation by entrepreneurs.

US Fairlie, R.W.
2017 The Valuation of Moral Rights: A Field Experiment

U.S. intellectual property law is firmly rooted in utilitarian principles. Copyright law is viewed as a means to give proper monetary incentives to authors for their creative effort. Many European copyright systems pursue additional goals: Authors have the right to be named as author, to control alterations and to retract their work in case their artistic beliefs have changed. Protecting these “moral rights” might be justified by the preferences of typical authors.

US Bechtold, S., Engel, E.
2017 A firm of one's own: experimental evidence on credit constraints and occupational choice

This study presents results from a randomized evaluation of two labor market interventions targeted to young women aged 18 to 19 years in three of Nairobi's poorest neighborhoods. One treatment offered participants a bundled intervention designed to simultaneously relieve credit and human capital constraints; a second treatment provided women with an unrestricted cash grant, but no training or other support.

Kenya Brudevold-Newman, A., Honorati, M., Jakiela, P., Ozier, O.
2017 More Women in Tech? Evidence from a field experiment addressing social identity

This paper investigates whether social identity considerations and norms may be driving occupational choices by women.

Del Carpio, L., Guadalupe, M.
2017 Unpacking the Determinants of Entrepreneurship Development and Economic Empowerment for Women

A 5-day enterprise training programme for women in Kenya. Results forthcoming.

Kenya McKenzie, D., Paruzzolo, S.
2017 Organizational Barriers to Technology Adoption: Evidence from Soccer-Ball Producers in Pakistan

This article studies technology adoption in a cluster of soccer-ball producers in Sialkot, Pakistan. We invented a new cutting technology that reduces waste of the primary raw material and gave the technology to a random subset of producers. Despite the clear net benefits for nearly all firms, after 15 months take-up remained puzzlingly low.

Atkin, D., Chaudhry, A., Chaudry, S., Khandelwal, A.
2017 Micro-entrepreneurship Debt Level and Access to Credit: Short-Term Impacts of a Financial Literacy Program

Using a randomized control trial, we evaluated the effect of a financial literacy program on the level of debt and on formal access to credit in Chile. We use a sample of beneficiaries of a publicly run micro-entrepreneurship program. We evaluated the program using administrative data with information on the debt level, interest rates, and new loans provided by the formal sector. The program tends to decreased debt level in the short run while increasing the probability of having formal debt.

Chile Martínez A, C., Puentes, E.
2017 A firm of one's own: experimental evidence on credit constraints and occupational choice

This study presents results from a randomized evaluation of two labor market interventions targeted to young women aged 18 to 19 years in three of Nairobi's poorest neighborhoods. One treatment offered participants a bundled intervention designed to simultaneously relieve credit and human capital constraints; a second treatment provided women with an unrestricted cash grant, but no training or other support.

Kenya Brudevold-Newman, A., Honorati, M., Jakiela, P., Ozier, O.
2017 Incentives for Public Goods Inside Organizations: Field Experimental Evidence

We report results of a natural field experiment conducted at a medical organization that sought contribution of public goods (i.e., projects for organizational improvement) from its 1200 employees. Offering a prize for winning submissions boosted participation by 85 percent without affecting the quality of the submissions. The effect was consistent across gender and job type. We posit that the allure of a prize, in combination with mission-oriented preferences, drove participation.

US Blasco, A., Jung, O., Lakhani, K.R., Menietti, M.
2017 Training Aspiring Entrepreneurs to Pitch Experienced Investors: Evidence from a Field Experiment in the United States

Accredited investors finance more than 75,000 U.S. startups annually. We explain how training aspiring entrepreneurs to pitch their new business ideas to these investors affects their odds of continued funding discussions. We model accredited investors’ decision to continue investigation as a real option whose value is a function of their experience and the information contained in the entrepreneurs’ pitches. We derive four hypotheses from the model, which we test through a field experiment that randomly assigns pitch training at four elevator pitch competitions.

US Clingingsmith, D., Shane, S.
2017 How Does Feedback Impact New Ventures? Fundraising in a Randomized Field Experiment

Financial models assume startups learn from feedback, but it is hard to test it empirically. First, because demand and supply of information are endogenous. Second, because business education and acceleration bundle feedback with confounding treatments. This paper is the first randomized experiment testing how unsolicited written feedback impacts fundraising of high-stakes entrepreneurs. All 88 teams entered a global accelerator and received $40,000. A random half of them additionally received feedback to business-plans.

Wagner, R.A.
2017 Micro-entrepreneurship Debt Level and Access to Credit: Short-Term Impacts of a Financial Literacy Program

Using a randomized control trial, we evaluated the effect of a financial literacy program on the level of debt and on formal access to credit in Chile. We use a sample of beneficiaries of a publicly run micro-entrepreneurship program. We evaluated the program using administrative data with information on the debt level, interest rates, and new loans provided by the formal sector. The program tends to decreased debt level in the short run while increasing the probability of having formal debt.

Chile Martínez A, C., Puentes, E.
2017 Do Credit Constraints Limit Entrepreneurship? Heterogeneity in the Returns to Microfinance

Can improved access to credit jump-start microenterprise growth? We examine subjects in urban Hyderabad, India, six years after microfinance–an intervention commonly believed to lower the cost of credit and spark business creation–was randomly introduced to a subset of neighborhoods. We find large benefits both in business scale and performance from giving “gung-ho entrepreneurs” (GEs)–those who started a business before microfinance entered–more access to microfinance. Notably, these effects persist two years after microfinance was withdrawn from Hyderabad.

India Banerjee, A., V., Breza, E., Duflo, E., Kinnan, C.
2017 Interfirm Relationships and Business Performance

A business networking programme on firm performance in China, and how groups composition and meeting frequency can facilitate trust and information flows. Results forthcoming.
 

China Cai, J., Szeidl, A
2017 Social influence over career choice: evidence from a randomized field experiment on entrepreneurial mentorship

How do different sources of social influence impact the likelihood of entrepreneurship? Using a longitudinal field experiment with a pre-test/post-test design, random assignment to an entrepreneur mentor of a student increases the likelihood of entrepreneurial careers, particularly for students whose parents were not entrepreneurs.

US Eesley, C., Wang, Y.
2017 Micro-entrepreneurship Debt Level and Access to Credit: Short-Term Impacts of a Financial Literacy Program

Using a randomized control trial, we evaluated the effect of a financial literacy program on the level of debt and on formal access to credit in Chile. We use a sample of beneficiaries of a publicly run micro-entrepreneurship program. We evaluated the program using administrative data with information on the debt level, interest rates, and new loans provided by the formal sector. The program tends to decreased debt level in the short run while increasing the probability of having formal debt.

Chile Martínez A, C., Puentes, E.
2017 Do Credit Constraints Limit Entrepreneurship? Heterogeneity in the Returns to Microfinance

Can improved access to credit jump-start microenterprise growth? We examine subjects in urban Hyderabad, India, six years after microfinance–an intervention commonly believed to lower the cost of credit and spark business creation–was randomly introduced to a subset of neighborhoods. We find large benefits both in business scale and performance from giving “gung-ho entrepreneurs” (GEs)–those who started a business before microfinance entered–more access to microfinance. Notably, these effects persist two years after microfinance was withdrawn from Hyderabad.

India Banerjee, A., V., Breza, E., Duflo, E., Kinnan, C.
2017 Information, Perceptions and Exporting - Evidence from a Randomized Controlled Trial

We present novel evidence from the results of a randomized controlled trial on the role that information plays in the perceptions of the benefits and costs of exporting. We first present results from a baseline survey of approximately 1,000 UK manufacturing firms to show that non-exporters hold substantially more negative beliefs about the costs and benefits of exporting relative to exporters.

Breinlich, H., Donaldson, D., Nolen, P.J., Wright, G.C.
2017 When early adopters don't adopt

In October 2014, all 4,494 undergraduates at the Massachusetts Institute of Technology were given access to Bitcoin, a decentralized digital currency. As a unique feature of the experiment, students who would generally adopt first were placed in a situation where many of their peers received access to the technology before them, and they then had to decide whether to continue to invest in this digital currency or exit. Our results suggest that when natural early adopters are delayed relative to their peers, they are more likely to reject the technology.

US Catalini, C., Tucker, C.
2017 Smart or Diverse Start-up Teams? Evidence from a Field Experiment

This paper explores the relationship between cognitive abilities and team performance in a start-up setting in a field experiment in which 573 students in 49 teams started up and managed real companies. Performance in this setting hinges on three tasks: opportunity recognition, problem solving, and implementation. Cognitive ability at the individual level has a positive effect on opportunity recognition and problem solving but no clear effect on implementation.

Netherlands Hoogendoorn, S., Parker, S.C.
2017 Teaching personal initiative beats traditional training in boosting small business in West Africa

Standard business training programs aim to boost the incomes of the millions of self-employed business owners in developing countries by teaching basic financial and marketing practices, yet the impacts of such programs are mixed

Campos, F., Frese, M., Goldstein, M., Iacovone, L., Johnson, H. C., McKenzie, D., Mensmann, M.
2017 Valuing Alternative Work Arrangements

We employ a discrete choice experiment in the employment process for a national call center to estimate the willingness to pay distribution for alternative work arrangements relative to traditional office positions. Most workers are not willing to pay for scheduling flexibility, though a tail of workers with high valuations allows for sizable compensating differentials. The average worker is willing to give up 20 percent of wages to avoid a schedule set by an employer on short notice, and 8 percent for the option to work from home.

Mas, A., Pallais, A.
2017 Micro-entrepreneurship Debt Level and Access to Credit: Short-Term Impacts of a Financial Literacy Program

Using a randomized control trial, we evaluated the effect of a financial literacy program on the level of debt and on formal access to credit in Chile. We use a sample of beneficiaries of a publicly run micro-entrepreneurship program. We evaluated the program using administrative data with information on the debt level, interest rates, and new loans provided by the formal sector. The program tends to decreased debt level in the short run while increasing the probability of having formal debt.

Chile Martínez A, C., Puentes, E.
2017 Do Credit Constraints Limit Entrepreneurship? Heterogeneity in the Returns to Microfinance

Can improved access to credit jump-start microenterprise growth? We examine subjects in urban Hyderabad, India, six years after microfinance–an intervention commonly believed to lower the cost of credit and spark business creation–was randomly introduced to a subset of neighborhoods. We find large benefits both in business scale and performance from giving “gung-ho entrepreneurs” (GEs)–those who started a business before microfinance entered–more access to microfinance. Notably, these effects persist two years after microfinance was withdrawn from Hyderabad.

India Banerjee, A., V., Breza, E., Duflo, E., Kinnan, C.
2017 Market competition and the effectiveness of incentive pay

It is well-established that the effectiveness of pay-for-performance (PfP) schemes depends on employee- and organization-specific factors. However, less is known about the role of external forces. Investigating the role of market competition on the effectiveness of PfP, we theorize that there are two counteracting effects – business stealing and competitor response – that jointly generate an inverted U-shape relationship between PfP effectiveness and competition.

Germany Khashabi, P., Heinz, M., Zubanov, N., Kretschmer, T., Friebel, G.
2017 When Does Advice Impact Startup Performance?

This paper explores whether the advice entrepreneurs receive about people management influences their firm's performance.

India Koning, R., Hasan, S., Delecourt, S., Chatterji, A.
2017 The Impact of Exporting: Evidence from a Randomized Experiment in Egypt

In the context of rug-making in Egypt, the opportunity to export provides evidence that learning-by-exporting occurs, and can lead to production quality and cost improvements.

Egypt Atkin, D., Khandelwal, A., Osman, A.
2017 Do Credit Constraints Limit Entrepreneurship? Heterogeneity in the Returns to Microfinance

Can improved access to credit jump-start microenterprise growth? We examine subjects in urban Hyderabad, India, six years after microfinance–an intervention commonly believed to lower the cost of credit and spark business creation–was randomly introduced to a subset of neighborhoods. We find large benefits both in business scale and performance from giving “gung-ho entrepreneurs” (GEs)–those who started a business before microfinance entered–more access to microfinance. Notably, these effects persist two years after microfinance was withdrawn from Hyderabad.

India Banerjee, A., V., Breza, E., Duflo, E., Kinnan, C.
2017 A Field Experiment on Search Costs and the Formation of Scientific Collaborations

Search costs continue to powerfully shape (and limit) the formation of collaborations between scientists. Formation of collaborations appears
to be highly sensitive to information-rich face-to-face interactions, which existing communications technologies may not sufficiently substitute.

US Boudreau, K., Brady, T., Ganguli, I., Gaule, P., Guinan, E., Hollenberg, T., Lakhani, K.
2017 A firm of one's own: experimental evidence on credit constraints and occupational choice

This study presents results from a randomized evaluation of two labor market interventions targeted to young women aged 18 to 19 years in three of Nairobi's poorest neighborhoods. One treatment offered participants a bundled intervention designed to simultaneously relieve credit and human capital constraints; a second treatment provided women with an unrestricted cash grant, but no training or other support.

Kenya Brudevold-Newman, A., Honorati, M., Jakiela, P., Ozier, O.

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