Monitoring in Small Firms: Experimental Evidence from Kenyan Public Transit (Inglés)

Small firms struggle to grow beyond a few employees. We introduce monitoring devices into commuter minibuses in Kenya and randomize which minibus owners have access to the data using a novel mobile app. We find that treated vehicle owners modify the terms of the contract to induce higher effort and lower risk-taking from their drivers. This reduces firm costs, and increases firm profitability. There is suggestive evidence that some firms expand. These...
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INFORMACIÓN

  • Erin Kelley;
    Gregory Lane;
    David Schonholzer;

  • 2023/10/20

  • Informe

  • 192140

  • 1

  • Kenya,

  • Eastern and Southern Africa,

  • 2024/06/28

  • Disclosed

  • Monitoring in Small Firms: Experimental Evidence from Kenyan Public Transit

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