IGL Trials Database

IGL curates a database with randomised controlled trials in the field of innovation, entrepreneurship and growth. Browse our list of topics, see it as a map, or use the search function below.

2018
McKenzie, D., Pouliquen, V., Benhassine, N., Santini, M.

Examines a program in Benin that drastically reduces costs to formalize a business, while also offering tax mediation and training. Results forthcoming.

2018
Martínez A., C., Puentes, E., Ruiz-Tagle, J.

We investigate the impact of a program providing asset transfers and business training to low income individuals in Chile, and asked whether a larger asset transfer would magnify the program's impact. We randomly assigned participation in a large scale, publicly run micro-entrepreneurship program and evaluated its effects over 45 months. The program improved business practices, employment, and labor income. In the short run, self-employment increased by 14.8/25.2 percentage points for a small/large asset transfer.

2018
Thompson, N., Hanley, D.

As the largest encyclopedia in the world, it is not surprising that Wikipedia reflects the state of scientific knowledge. However, Wikipedia is also one of the most accessed websites in the world, including by scientists, which suggests that it also has the potential to shape science. This paper shows that it does. Incorporating ideas into Wikipedia leads to those ideas being used more in the scientific literature.

2018
Kim, H.

This project aims to understand how increased access to competitor information enabled by digitization affects the strategic decisions and performance of firms.

2018
Bruhn, M., Karlan, D., Schoar A.

A management consultancy intervention in Mexico, focusing on firm growth, showed a positive impact on firm productivity in the short term and amount of employees (and overall wage bill) in the long term, as compared with the control group.

2018
Aghion, P., Bechtold, S., Cassar, L., Herz, H.

We design two laboratory experiments to analyze the causal effects of competition on step-by-step innovation. Innovations result from costly R&D investments and move technology up one step. Competition is inversely measured by the ex post rents for firms that operate at the same technological level, that is, for neck-and-neck firms. First, we find that increased competition leads to a significant increase in R&D investments by neck-and-neck firms.

2018
Bechthold, L., Rosendahl Huber, L.

This study draws on social learning theory and research concerning role model effects to understand how exposure to female entrepreneurial role models influences the development of entrepreneurial self-efficacy, attitudes and intentions among female students. The results presented are from a field experiment including data from 547 students and 98 entrepreneurs.

2018
McKenzie, D., Cusolito, A. P., Dautovic, E.

Many innovative start-ups and small and medium-size enterprises have good ideas, but do not have these ideas fine-tuned to the stage where they can attract outside funding. Investment readiness programs attempt to help firms to become ready to attract and accept outside equity funding through a combination of training, mentoring, master classes, and networking.

2018
Lafortune, J., Riutort, J., Tessada, J.

Using a randomized experiment in Chile we study the impact role models have in the context of a training program for micro-entrepreneurs. We show that being in a group randomly chosen to be visited by a successful alumnus of the program increases household income one year after, mostly due to increased business participation and business income.

2018
Barham, B.L., Chavas, J.P., Fitz, D., and Schechter, L.

We construct a model of technology adoption with agents differing on two dimensions: their cognitive ability and their receptiveness to advice. While cognitive ability unambiguously speeds adoption, receptiveness to advice may speed adoption for individuals with low cognitive ability, but slow adoption for individuals with high cognitive ability. We conduct economic experiments measuring US farmers' cognitive ability and receptiveness to advice and examine how these characteristics impact their speed of adoption of genetically modified (GM) corn seeds.

2018
Shamdasani Y., Kaur S., Breza, E.

Effects of relative pay on effort and labour supply are being examined in the context of an Indian manufacturing plant where co-workers' wages are exogenously varied. Results forthcoming.

2018
Graff Zivin, J., Lyons, E.

Existing theories and empirical research on how innovation occurs largely assume that innovativeness is an inherent characteristic of the individual and that people with this innate ability select into jobs that require it. In this paper, we investigate whether people who do not self-select into being innovators can be induced to innovate, and whether they innovate differently than those who do self-select into innovating.

2017
Banerjee, A., V., Breza, E., Duflo, E., Kinnan, C.

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.

2017
Cai, J., Szeidl, A

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

2017
Clingingsmith, D., Shane, S.

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.

2017
Eesley, C., Wang, Y.

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.

2017
Catalini, C., Tucker, C.

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.

2017
Atkin, D., Khandelwal, A., Osman, A.

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.

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

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

2017
Koning, R., Hasan, S., Delecourt, S., Chatterji, A.

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

2017
Del Carpio, L., Guadalupe, M.

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

2017
Breinlich, H., Donaldson, D., Nolen, P.J., Wright, G.C.

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.

2017
McKenzie, D.

Almost all firms in developing countries have fewer than ten workers, with a modal size of one. Are there potential high-growth entrepreneurs, and can public policy help identify them and facilitate their growth? A large-scale national business plan competition in Nigeria provides evidence on these questions. Random assignment of US$34 million in grants provided each winner with approximately US$50,000.

2017
Hoogendoorn, S., Parker, S.C.

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.

2017
Blasco, A., Jung, O., Lakhani, K.R., Menietti, M.

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.

2017
Mas, A., Pallais, A.

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.

2017
Khashabi, P., Heinz, M., Zubanov, N., Kretschmer, T., Friebel, G.

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.

2017
Boudreau, K., Brady, T., Ganguli, I., Gaule, P., Guinan, E., Hollenberg, T., Lakhani, K.

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.

2017
Bechtold, S., Engel, E.

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.

2017
Martínez A, C., Puentes, E.

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.

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