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

Author

Listed:
  • Alejandro Cid
  • José María Cabrera
  • 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

  • Alejandro Cid & José María Cabrera & Marianne Bernatzky, 2016. "The effect of one-on-one assistance on the compliance with labor regulation. A field experiment in extremely vulnerable settings," Documentos de Trabajo/Working Papers 1605, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    • Handle: RePEc:mnt:wpaper:1605
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    Cited by:

    1. Floridi, Andrea & Demena, Binyam Afewerk & Wagner, Natascha, 2020. "Shedding light on the shadows of informality: A meta-analysis of formalization interventions targeted at informal firms," Labour Economics, Elsevier, vol. 67(C).

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    More about this item

    Keywords

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

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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