Last updated: March 22, 2022

Researcher

Search Database

Region

Country

PIs (JPAL affiliates bolded)

Sector (Agriculture) and Region (SSA)

The Fruits (and Vegetables) of Crime: Protection from Theft and Agricultural Development.” Working Paper, January 2020.

Yes, though costs to farmers exceed benefits (not including impacts on nearby neighbors); consider farm security on a collective (rather than individual) basis.

Recruited 585 farmers across 76 villages from agricultural network; treatment villages received opportunity to hire subsidized watchmen well in advance (so they could change their cropping choices, i.e. plant more valuable crops susceptible to theft). 87% hired the watchmen.

-Treated farmers were 13.9pp (77%) more likely to report trying a new crop or expanded the area of a previously grown crop, 11.5pp (61%) more likely to have bought farm assets.
-In addition to increasing income, the intervention lowered neighbor disputes (~60%, self report).
-Potential spillovers from farmers near to matched farmers with watchmen reporting lower theft.

Sector (Agriculture) and Region (SSA)

Information, Market Access, and Risk: Addressing Constraints to Agrictulural Transformation in Northern Ghanaa

Different combinations of insurance, input marketing, free fertilizer delivery, and extension services.

Study is ongoing
"Preliminary results show that farmers who received access to a high payout level of rainfall insurance spent more on inputs for their farms, but these investments did not lead to higher yields or profits for farmers."

Sector (Agriculture) and Region (SSA)

Local soil testing, information dissemination to nearby farmers, measure whether they buy certain types of fertilizer.

Sector (Agriculture) and Region (SSA)

Sierra Leone

TBD (study in 2011-13, why no results?)

Different levels of subsidies for improved seeds (0%, 50%, and 100%) x training on cultivation techniques for new variety

Sector (Agriculture) and Region (SSA)

Self-selection into credit markets

No- increased output counteracted by increased costs

Soro Yiriwaso offers a loan product called Prêt de Campagne, or “countryside loan,” to women who join local community associations. Two stage study in 198 villages: (1) loan offered in 88 villages (with 22% uptake), (2) grants (worth $140) were offered to a random subset of households who chose not to take out loans.

"Households in villages which were offered loans spent on average US$10.35 more on fertilizer and US$5.08 more insecticides and herbicides than the households in villages that did not get loans. Offering loans led to an increase in the value of agricultural output by US$32, and an increase in the value of livestock by US$168. The loans did not have a significant effect on profits, consumption, whether the household has a small business, nor educational expenses."

No detectable effect on profits or consumption

Sector (Agriculture) and Region (SSA)

Interventions include a coupon of ~15% off fertilizers up to 25kg (good for three weeks after harvest), encouragement to form cooperatives, and coupon x cooperative. 10% of farmers from each group receive a technology-and-information intervention, receiving a half-teaspoon measuring spoon with info about how much that much fertilizer per plant increases returns.

Sector (Agriculture) and Region (SSA)

Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya

Not directly, but possibly, through increased farm output, unclear if increased profits

Subsidized/ risk managed fertilizer purchasing schemes

-T1: Basic SAFI (offer fertilizer at regular price with free delivery), at end of harvest
-T2: Basic SAFI with option for offer to return at a specific time
-T3: Basic SAFI 2-4 months after harvest
-T4: Basic SAFI 2-4 months after harvest with 50% subsidy

All treatment effects relative to a comparison group (T2-T4 implemented in year 2):
-T1: 11-14pp increase from 24% baseline in year 1; 16-18pp increase from 26% baseline in year 2 (63-75% increase)
-T2: 21-22pp increase from 26% baseline
-T3: 10pp increase from 26% baseline
-T4: 13-14pp increase from T3

BOTEC from paper suggests use of fertilizer increases income from maize farming by $9.6-15.7 from base of $89

Sector (Agriculture) and Country (Ethiopia)

Ethiopia

Translating the impact of quality protein maize into improved nutritional status for Ethiopian children: study protocol for a randomized controlled trial
Behavioural insights to support increased consumption of quality protein maize by young children: a cluster randomised trial in Ethiopia

The Effects of Decentralized and Video-based Extension on the Adoption of Integrated Soil Fertility Management – Experimental Evidence from EthiopiaKnowledge and Adoption of Complex Agricultural Technologies

Intervention does not target income: "One to three months after harvest, AE+BN households showed meaningfully higher levels of targeted behaviors, including separate grain and flour storage, cooking, and feeding QPM to children, than AE households."

Sector (Agriculture) and Country (Ethiopia)

Ethiopia

The Effects of Decentralized and Video-based Extension on the Adoption of Integrated Soil Fertility Management – Experimental Evidence from Ethiopia
Knowledge and Adoption of Complex Agricultural Technologies

Not directly, but possibly, through increased adoption of ISFM

In-person and video training on integrated soil fertility management (ISFM) technologies

Evaluates effects of decentralized extension program, and additional video-based information campaign, on farmers' adoption of a package of integrated soil fertility management (ISFM) technologies and individual practices. Randomization takes place at the microwatershed level (agglomerations of rural communities sharing a water outlet). Treated participants received the extension training only (occurring in groups of ~50) led by 9 model farmers where information was expected to spread through the community (T1, n=36), or extension training + video-based information with the latter available to all members of the community (T2, n=36), and a control group (n= 89).

No effect on income provided in the summary, just impact on adoption (below) and knowledge; effects on income may vary across regions

T1 (extension only) farmers adopted an additional 0.683 practices relative to control (which adopted 2.2 technologies). T2 (extension+video training) farmers adopted an additional 0.840 practices relative to control.

T1: 8.4pp (55.3%) more likely to adopt all ISFM practices
T2: 10.9pp (71.7% more likely to adopt all ISFM practices

German Agency for International Cooperation has scaled the ISFM+ project into 42 additional districts based on results of the study

Sector (Agriculture) and Country (Ethiopia)

Ethiopia

Offering rainfall insurance to informal insurance groups: Evidence from a field experiment in Ethiopia (also in Zotero)

Training to emphasize risk-sharing benefits of insurance

"We report results from Ethiopia from a first attempt to market weather insurance to informal risk-sharing groups. The groups were offered training on risk management and insurance. We randomized the content of training provided to group leaders, with some sessions focusing on the benefits of informally sharing idiosyncratic basis risk."

The intent-to-treat estimate suggests that average demand in the group went up by 15 percentage points, while the “social” treatment increased the probability that someone in the informal group would purchase insurance at all by 29% (see Table 4, p. 140). The authors find that demand increased only among those selected for training and not among other members of the group (p. 138).

No summary provided on JPAL; return later and use the paper to fill in

Sector (Agriculture) and Country (Ethiopia)

Ethiopia

The Impacts of Microcredit: Evidence from Ethiopia

Randomized microcredit, family planning, or microcredit and family planning to rural Ethopian women and girls

"Overall, the program led to a substantial increase in both the probability of borrowing and the loan size, but there is limited evidence that it increased household income, improved school attendance or empowered women in household decision-making." (link)

Study is somewhat dated (2003-2006)

Sector (Agriculture) and Country (Ethiopia)

Ethiopia

Productivity, credit, risk, and the demand for weather index insurance in smallholder agriculture in Ethiopia
The impact of commercial rainfall index insurance: Expertimental evidence from Ethiopia

"The first year of insurance sales (summer of 2012) was characterized by a widespread drought, and the insurance triggered in 42 percent of villages for at least one insured crop. The average payout during this first year was US$27. In the second sales year (summer 2013) the insurance triggered for only 13 percent of villages in at least one crop, with smaller payouts averaging US$9.

Researchers found a large difference between stated and actual demand for weather insurance. Prior to being offered insurance, 62 percent of farmers stated that they would buy the product, and on average farmers were found to be willing to pay the actuarially fair cost. However, when offered the actual product, demand was lower, and significantly influenced by the availability and amounts of the subsidy vouchers. While the insurance was purchased a total of 183 times, 114 individuals who indicated beforehand that they would purchase insurance did not make the purchase, despite receiving a voucher. Overall take-up was lower in villages offered interlinked credit and insurance products, though due to logistical problems, loans were issued in only one village."

Sector (Agriculture) and Country (DRC) and Outcome of Interest (Earnings and Income)

Democratic Republic of Congo

Adoption of Improved Seeds, Evidence from DRC

Distributing improved seeds through vouchers

Seed vouchers distributed via public lotteries, offering 30, 60, 90, or 100% discount, redeemable at seed store in town (T1, n=25 villages)
Seed vouchers (as above) + delivery: could redeem when the truck passed through their village or could get them in town
Control (T2, n=32 villages)
Note: this is randomized orthogonally on another evaluation with two treatments (extension targeting men in 67 villages, extension targeting women in 67 villages, and a comparison group of 67 villages)

Sector (Agriculture) and Country (Tanzania) and Outcome of Interest (Earnings and Income)

Tanzania

Creating (Digital) Labor Markets in Rural
Tanzania

TBD (study in 2013-2015, why no results?)

70 villages (selected for phone ownership over 80% and removed main hub, i.e. Moshi); 40 provided with access to the SMS app, 30 in control group
In treatment group, researcher conducted hands-on training sessions at village meetings to demo the app; employers post job ads that are sent via SMS to all registered workers, and applications instantly forward to employer.
Also randomized disclosure of wages in the job ad.

16-40% decrease in wage spread, leading to same average wage (lower offers from high-paying employers, higher offers from low-paying employers). About half indicated they would use the app again in the next season. No impact of wage disclosure.

No impact on average wages or number of jobs available

Topic (Livelihoods) and Country (Ethiopia OR Democratic Republic of Congo OR Tanzania)

Tanzania

Survey research (not an RCT) to ask about fertilizer use, price and quantity of fertilizer sold, wholesale costs of acquiring stock from the importer (to estimate markup), maize sales, harvest output, and related questions. Also surveyed maize sellers to get a retrospective monthly panel of maize buying and selling prices. Estimate distance, duration, and costs of transportation between all villages/markets and major urban centers.

Topic (Livelihoods) and Country (Ethiopia OR Democratic Republic of Congo OR Tanzania)

Tanzania

Quasi-experiment (diff-in-diff): monthly mobile surveys to ~1750 HHs in Dar es Salaam metro area and compare HHs at varying distances from the newly constructed first phase of the BRT line and later phases of the BRT system; collect info on travel patterns/times, employment outcomes, incomes, consumption, and others.

Two RCTs planned (subsidized access to BRT for low-income, spatially conditional cash transfer program)

Topic (Livelihoods) and Country (Ethiopia OR Democratic Republic of Congo OR Tanzania)

Entrepreneurship

Ethiopia

Impacts of industrial and entrepreneurial jobs on youth:5-year experimental evidence on factory job offers andcash grants in Ethiopia

Yes, for start-up grants, but not after 5 years

Cash grant of 5000 Birr (~$300), framed as business start-up fund, given unconditionally except for requirement to participate in minimal start-up training

Job offer: work on production line at one of five industrial firms, pay daily wages of $1-1.50 (T1)
Start-up grants: unconditional cash grant of 5000 Birr (~$300), framed as business start-up fund though free to use as they see fit (savings, consumption investment) + 5 days of business training and planning + individual mentoring; had to complete 3+ days of training to get the cash grant (T2)

"Industrial jobs: After one year, offers of an industrial job did not lead applicants to experience better economic outcomes relative to the comparison group—they did not have higher weekly earnings and their wages were also lower and hours longer than those who found informal employment. Most of those offered formal employment ultimately quit their industrial jobs; within the first month of the intervention, nearly a third had quit and within the year 77 percent had left their positions."

"Start-up grants: One year after the program was delivered, recipients of start-up grants reported increased earnings and a nearly 10 percent increase in consumption over the comparison group. Weekly earnings exceeded those of the comparison group by US$1 (US$3.40 PPP), a one third increase in earnings driven mostly by business income. These results were largely driven by increased work hours, mostly through self-employment and retail trades. After the first year, 41 percent of the start-up grant group were engaged in self-employment. However, these income, productivity, and self-employment boosts disappeared after five years. It seems the cash acted as a temporary boost to earnings, rather than a permanent lift out of poverty."

Industrial jobs: no impact
Start-up grants: short term impact on earnings ($1 or a 33% increase) and consumption (~10% increase)

Sector (Labor Markets) and Region (SSA)

Labor Markets

Uganda; 48 other African countries

Diego Ubfal
Fernando Vega-Redondo
Paolo Pin
Cristiana Benedetti-Fasil
Charles Brummitt
Gaia Rubera
Drik Hovy
Tommaso Fornaciari

Peer Networks and Entrepreneurship: A Pan-African RCT

TBD: Direct effect is "quality" and existence of business plan

Recruited 4,958 participants for Entrepreneurship course, randomly assigned to online or in-person. Assessed the quantity and quality of business plans that come from different treatments.

Submission: Face-to-face treatment increased chance of proposal submission by 27% over a baseline of 55 percent. The effect was larger for participants of the same nationality. These proposals were higher quality on average.

Group characteristics: Perversely, the presence of more experienced group members decreased the quality of proposals.

Sector (Labor Markets) and Region (SSA)

Labor Markets

Half of a group of 120 GUP (graduation from ultra poverty), SOUP (savings out of ultra poverty), and comparison villages were randomly selected to participate in an 11-month employment program that offered wages for the production of cloth bags.

Researchers randomly varied the complexity of the bag design and wage per bag to understand the impact of these factors on individuals’ decisions to engage in paid labor and whether willingness to engage in complex tasks depended on the wage level.

Sector (Labor Markets) and Region (SSA)

Labor Markets

Uganda

Tackling Youth Unemployment: Evidence From a Labor Market Experiment in Uganda

Vocational training through firms or through external entities (effect is similar)

1714 workers who applied for the vocational training were randomly assigned to the following groups:

Vocationally trained (VT) group; Matching only group: Workers were not offered training, but they were matched with firms to be hired; Firm trained (FT) group; Comparison group.

Result: VT workers increased their sector-specific skills by 34 percent relative to the comparison group, who scored an average of 30 out of 100 possible points on a 20-minute skills test. The FT workers increased their sector-specific skills by 32 percent.

Skill improvement: Both VT and FT workers increased their sector-specific skills by about 34 percent.

Employment: VT and FT treatments increased likelihood of employment (by 21% and 14% respectively), months worked (19% and 11%), and to higher hourly wages (11% and 12%).

Vocationally trained workers experienced more job mobility and effect persistence compared to FT workers.

On average, over the three years post-intervention, VT and FT workers were 9 percentage points (21 percent) and 6 percentage points (14 percent), respectively, more likely to be employed relative to 56 percent employment rates in the comparison group.
Both VT and FT workers also increased the number of months worked in a year by 19 percent and 11 percent respectively, compared to 4.5 months average annual employment among the comparison group.
In addition, the hourly wages of both VT and FT workers, conditional on employment, grew by 11 percent and 12 percent over the comparison group, respectively.

Sector (Labor Markets) and Region (SSA)

Labor Markets

Women’s Empowerment Programming and Intimate Partner Violence in Democratic Republic of the Congo

TBD. Main variable of interest is violence, not income.

Researchers randomly selected 1,000 women from a full sample of 2,000 women to participate in a women’s empowerment program; 657 women selected to receive the program were married or co-habitating, and their responses inform this IPV work. Women selected to participate in the empowerment program received US$10 per month for twelve months and between forty and seventy hours of training focused on numeracy, vocational skills, and building connections with other women.

Sector (Labor Markets) and Region (SSA)

Labor Markets

Ethiopia

Attracting Talented Workers by Reducing Application Costs in Ethiopia

TBD: direct effect is on the quality of applicants, so the beneficiary of interest is firms

When job seekers (totaling 4,689 people) called to get more information about the position and application process, they were randomly assigned to receive an application incentive, a higher wage, or control treatment. Results appear to significantly improve outcomes for employers.
Results: Firms saw improvements in: Quality of the applicant pool; Drivers of applicant’ quality; Application rates; Job search activity and outcomes; Managers preferences and expectations.

Application incentive:
Applicant quality: increased cognitive score by .25 points, and GPA by 1 standard deviation, on average. Did not impact other measures of quality.
Drivers: women and less-experienced workers were drawn by incentive.
Increased # applications from inquiries by 27%
No distortions to the rest of the job search

High wages:
Increased quality of non-cognitive ability score
Increased # applications from inquiries by 46%
Distorted the rest of the job search: decreased job board visits by 10%, applicants received fewer interviews and offers.

None directly (impact is on the firm)

Sector (Labor Markets) and Region (SSA)

Labor Markets

Ethiopia

Job Fairs: Matching Firms and Workers in a Field Experiment in Ethiopia

Researchers identified 1,829 young high-school educated job seekers in Addis Ababa, as well as 498 large firms. Researchers randomly assigned 1,006 job seekers and 248 firms to receive invitations to two job fairs, with the remaining participants serving as the comparison group.
Researchers found that the job fairs succeeded in generating interactions between job seekers and firms, but this resulted in few vacancies being filled. Firms and job seekers seemed to have mismatched expectations.

Selection effect: job fair had 60% pickup rate, with strong selection effect.
Many firm-worker interactions, but no impact on employment outcomes.
In total, the two job fairs generated 76 job offers, of which only 14 were accepted.
Poor matching: employers and job seekers reported mismatched skill levels.

Possibly negative, by inducing low-skill workers to accept lower pay

Sector (Labor Markets) and Region (SSA)

Labor Markets

Uganda

Intentions to Participate in Adolescent Training Programs: Evidence from Uganda
Women’s Empowerment in Action: Evidence from a Randomized Control Trial in Africa

Yes, through increased labor market participation

Life skills and vocational training for female youth

In Uganda, researchers examined the impact of a combination of life skills and vocational training on 4,888 female youths' health knowledge, risky behaviors, and engagement in income-generating activities.
Results indicate a significant increase in income, knowledge about reproductive health, and consistent condom use, and a reduction in nonconsensual sex and pregnancy. However, the program had no impact on sexually transmitted infections.

20% take-up, but randomization accounts for selection effects.

Economic empowerment: After two years, girls in ELA communities were 6.8 pp (67%) more likely to have income-generating activities, and 4.9pp after 4 years.

Control over the body: Increase in safe sexual practices, and more equal gender relationships. Also shifted gender aspirational attitudes on employment, marriage, and childbearing.

Cost effectiveness: Cost US$17.90 per eligible participant, increased average annual earnings by US$50.

Female youth in ELA communities were 6.8 percentage points (72 percent) more likely to be engaged in an income-generating activity and increased their monthly consumption expenditures by 41 percent.

Cost US$17.90 per eligible participant, increased average annual earnings by US$50.

JPAL-IPA

Sector (Labor Markets) and Region (SSA)

Labor Markets

Uganda

Generating Skilled Self-Employment in Developing Countries

In Uganda, researchers used a randomized evaluation to measure the impact of a government program that gave groups of young people US$400 per person in return for a proposal to start a skilled trade.
Recipients invested the cash and significantly increased their incomes for several years. However, nine years after the grants, non-recipients eventually caught up to grant recipients in terms of income and employment, suggesting that in this instance, grants acted more like a kick start than a lift out of poverty.

Four years after the grants were delivered, the program seemed to have strong economic effects. Beneficiaries of the YOP program had 41% higher income and worked 17% more hours. These effects dissipated after 9 years.

41% higher income after 4 years, no impact after 9 years. Could generate up to $700 in value over first 8 years

Sector (Labor Markets) and Region (SSA)

Labor Markets

Ethiopia

Yes, but only one of the 2 interventions tested.

A 2-day workshop teaching CV writing, application letters and job interviews. Also included certification of ‘hard-to-observe’ skills such as cognitive, linguistic, and mathematics abilities.

Helping youth signal their skills to employers improved their earnings and job duration four years later, especially for youth who would usually fare the worst in the labor market.
Reducing the cost of job search through a transportation subsidy improved the likelihood of having a formal job in the short run, but had no impact after four years.

No impact on having a job, hours worked, earnings, or job satisfaction.
Job permanence: application workships increased probability of working in a permanent job by 60%, and of a formal job by 30%. The transport subsidy increased formality by 30%.
Search behavior: transport subsidy encouraged more searching, but didn't improve outcomes.
Long run results: Workshop increased earnings by 20 percent and increased job satisfaction by 12 % after 4 years, particularly for those with worst labor market prospects.

The job application workshop generated an average wage gain of US$10 per month per worker, compared to a one-time cost of US$18.20 per individual.
On the other hand, the effects of the transport subsidy program dissipated over time.

Sector (Labor Markets) and Region (SSA)

Entrepreneurship

Uganda

Jeannie Annan
Chris Blattman
Eric Green
Julian Jamison
Michael Christian Lehmann

Cash and Microenterprise Support for the Ultra-Poor

Ugandan Women’s Income Generating Support (WINGS) program, with financial grants, business skills training, and ongoing supervision on individuals’ economic outcomes. Additional benefits from "group dynamics" training

The sample consisted of 1,800 participants from 120 villages in Kitgum and Gulu. Researchers randomly assigned villages to treatment or comparison groups in two phases.
In Phase I, half of the villages received the first three components of the WINGS program, and the other half, which served as the comparison group, were told they would receive the program in 18 to 24 months. Of the villages receiving the WINGS program, half were randomly assigned to receive an additional group dynamics training component.

Treatment without group training: monthly cash earnings increased by 67%.
Treatment with group training: earnings increased by 151%

67-151% (latter if including group training), though caveat in the paper suggests that authors interpret these with caution given lack of change in other income proxies

Sector (Labor Markets) and Region (SSA)

Labor Markets

The Apprenticeship-to-Work Transition: Experimental Evidence from Ghana

In Ghana, researchers conducted a randomized evaluation to estimate the impact of a government program that placed young people in traditional apprenticeships and matched them with training providers.

Preliminary results:
"Access to the NAP program led to modest increases in the probability of starting an apprenticeship (13 percentage points), a higher probability of completing training (10 percentage points), and a longer duration of training (4 months). Completion rates were higher for women, who mainly enrolled in apprenticeships in the cosmetology and garment trades.

Employment: Access to the apprenticeship program shifted participants out of wage work and into self-employment.
Earnings: Average total monthly earnings of participants went down by about 13 percent relative to the comparison group, as many participants moved from wage work to less-lucrative self-employment or had not yet transitioned out of their apprenticeships.
Migration: Access to the program increased the probability of migration by 4 percentage points
Trainer Characteristics: Training with high-quality trainers led to earning increases that were more than offset by the reductions in earnings observed for the entire sample. In particular, apprentices who trained with the most profitable trainers had greater total monthly earnings than their peers who trained with less profitable trainers."

Preliminary results: Average total monthly earnings of participants went down by about 13 percent relative to the comparison group, as many participants moved from wage work to less-lucrative self-employment or had not yet transitioned out of their apprenticeships. This reduction in monthly earnings was highest for men in construction trades.

Sector (Labor Markets) and Region (SSA)

Labor Markets

Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions

Researchers worked in Peru to measure the marginal impact of adding business training to a group lending program. The results of this study found business training slightly improved business practices, but had no impact on key business outcomes such as revenue and profit.

Impact on Business Outcomes: No changes in business revenue, profits or employment. Potentially better preparation for "bad months."

Possible slight improvement in business practices.

Improved repayment of micro-loans, and increased loyalty to their bank.

This study found little or no evidence of changes in key business outcomes such as business revenue, profits or employment. For example, the business training had no effect on the number of workers employed at family businesses, did not change the profit margin of the most common products sold at retail businesses, did not increase the number of sales locations, and did not induce entrepreneurs to start new businesses.

Sector (Labor Markets) and Region (SSA)

Entrepreneurship

Colombia

Job creation in Colombia vs the U.S.: "up or out dynamics" meets "the life cycle of plants"

Encourage entrepreneurship, since younger firms generate more profits

Researchers analyzed data on all manufacturers with more than 10 employees in Colombia and the U.S. over a period of 30 years to compare employment growth among manufacturers in each country.

N/A, but indicates that young firms can generate more profits

Sector (Labor Markets) and Region (SSA)

Entrepreneurship

Colombia

Researchers evaluated Agruppa, a mobile phone-based technology service, which creates virtual buyer groups to buy more cheaply in bulk.

Demand for the service: 46 percent of all firms offered the service made a purchase from Agruppa from the offered five types of fruits and vegetables. Demand for the service fell steadily over the one-year evaluation period.

Travel time and costs: After 6 weeks, when demand was highest, firms offered the Agruppa service travelled 0.17 fewer days to the market and spent fewer minutes at the market when they did go. Combined, this resulted in a cost reduction of 20,556 COP per week (US$6.66), which is equal to approximately 5 percent of weekly profits.

Quality of life: During the initial six-month period, when demand was highest, period participants also reported having a better quality of life, such as being less stressed, and having more time for family. These effects diminished over time as demand for the service decreased.

Price, sales, and profits: Profit margins 3–5 percentage points higher than firms not offered the service, on specific goods.

However, those offered Agruppa services also cut back on sales of other products (since they were going to the market less), and their total firm sales fell by 9 percent. Sales and profits for firms offered the service had decreased on average at the end of the evaluation period.

N/A. The evaluation found that initial demand for the service was high, saving business owners time and expense, and increasing profits on certain staple goods. However, since business owners cut back on sales of other products, revenue and profit fell on average and demand for the service decreased over time. Agruppa ultimately closed, pointing to the challenges of competing against centralized produce markets.

Sector (Labor Markets) and Region (SSA)

Entrepreneurship

Exporting and Firm Performance: Evidence from a Randomized Trial

In Egypt, researchers offered small-scale rug manufacturers the opportunity to export to high-income countries. They found that SMEs offered export opportunities increased both their profits and product quality relative to firms in a comparison group.

Increased monthly profits by 26%, hours worked by 5%, 43% increase in price per rug.

Increased product quality

Learning: Improvements in quality were a result of “learning-by-exporting” after 5 months.

Profit Among SMEs offered the opportunity to export, operating profits increased 16 to 26 percent relative to comparison group firms.

Sector (Labor Markets) and Region (SSA)

Entrepreneurship

The Impact of Credit Constraints on the Foreign Exchange Earnings of a Firm

This study evaluated the impact of credit constraints on exporting firms by examining two policy changes in India—one in 1998 that extended subsidized credit to businesses, and another in 2000 that revoked the subsidized credit for a portion of these businesses.

The rate of short-term bank credit for newly eligible firms increased by 18 percent and total bank borrowing increased by about 20 percent. Borrowing from other sources also increased, meaning that firms were taking advantage of more credit rather than substituting other sources of credit with subsidized credit.

The availability of credit for newly eligible firms led to a 22 percent increase in export earnings for these businesses.

Indian banking sector tends to under-lend.

The availability of credit for newly eligible firms led to a 22 percent increase in export earnings for these businesses. This supports the view that increased access to credit can cause higher levels of exportation. The study further shows that there is a positive relationship between exportation and firm growth and financial health.

Sector (Labor Markets) and Region (SSA)

Labor Markets

Household Matters: Revisiting the Returns to Capital among Female Micro-entrepreneurs

Notes that female micro-entrepreneurs only directly benefit from capital when they have no opportunity to divert the investment into their husband's enterprise.

India: Giving loan clients a grace period increased household-level business profits by around 45 percent, but had no effect on female-run business profits on average. This suggests that the average female client largely invested her loan in other household members' businesses.

Sri Lanka: Similar to the India study, grants only increased female-run business profits when they were the only business owner in their household. Women living in households with no other self-employed members increased their profits by 30 percent. Across all households, however, cash and in-kind grants had no impact on profits for female business owners.

Ghana: Gender disparities within households.

Restricted grants can increase profits 30-45% depending on household characteristics.

Sector (Labor Markets) and Region (SSA)

Labor Markets

Sri Lanka

Business training and female enterprise start-up, growth, and dynamics: Experimental evidence from Sri Lanka. Journal of Development Economics 106 (2014): 199-210.

Researchers found that business training alone was not sufficient to generate growth in pre-existing businesses, but when combined with a US$129 cash grant, the business training program appeared to boost profits in the short-term. Researchers also found that the training helped potential business owners start enterprises more quickly and run them better.

70% Take-up.

Business ownership: Substantial but short-lived increased in likelihood of owning a business: 20 pp for training + cash, 24 pp for training only. Both effects disippated after a year.

Business practices: Adoption of 6-9 out of 27 "good business practices" by both current and potential entrepreneurs.

Business outcomes: Training + cash increased profits for business owners by US$16.24 (Rs. 1,910) after 7-8 months, which dissipated after a year.

Business outcomes: For potential business owners, the effects lasted longer. Training increased work income by an average of US$12.7 (Rs. 1494), and profits increased by US$19.08 (Rs. 2244) in the medium term.(a 43 percent increase). The grant did not have an additional effect on these outcomes.

Potential business owners who were offered the training and opened a business also increased their sales and profits in the medium term: sales increased by US$53.11 (Rs. 6,248) (a 41 percent increase, relative to the comparison group) and profits increased by US$19.08 (Rs. 2244) (a 43 percent increase). The grant did not have an additional effect on these outcomes.

Sector (Labor Markets) and Region (SSA)

Labor Markets

Microenterprise Growth and the Flypaper Effect: Evidence from a Randomized Experiment in Ghana

Researchers in Ghana introduced in-kind and cash grants to men- and women-owned businesses to determine which kinds of grants help businesses grow, and whether different forms of grants have more or less success in growing men-owned businesses, compared to women-owned businesses.

Women-owned businesses: Cash grants did not have any effect on the profits of women-owned businesses, and in-kind grants only improved profits for women with businesses that had higher profits at the start of the study. Among the group of women with below-median initial profits—i.e., those with businesses operating at a near-subsistence level—neither cash nor in-kind grant had any effect. Yet, in the approximately 40 percent of firms with higher initial profits, the impact of the in-kind grants was quite large; their monthly profits increased by 77 to 96 cedis per month. Three years later, these businesses were still experiencing the positive effects of having received the in-kind grants.

Men-owned businesses: In contrast, there was no such pattern for men-owned businesses. Men-owned firms that had high initial profits as well as those with low initial profits benefitted from the in-kind grants. For men, receiving an in-kind grant raised profits about 28 to 60 cedis per month. The results for men suggested a lower impact of cash grants, but differences between the effects of cash and in-kind grants were less pronounced for men-owned businesses than for women-owned businesses.

In the approximately 40 percent of firms with higher initial profits, the impact of the in-kind grants was quite large; their monthly profits increased by 77 to 96 cedis per month. Three years later, these businesses were still experiencing the positive effects of having received the in-kind grants.

For men, receiving an in-kind grant raised profits about 28 to 60 cedis per month. The results for men suggested a lower impact of cash grants, but differences between the effects of cash and in-kind grants were less pronounced for men-owned businesses than for women-owned businesses.

Sector (Labor Markets) and Region (SSA)

Labor Markets

Sri Lanka

Labor Drops: Experimental Evidence on the Return to Additional Labor in Microenterprises. American Economic Journal: Applied Economics 11, no. 1: 202-35. 2019.

In Sri Lanka, researchers provided wage subsidies to randomly chosen microenterprises to determine if they would hire more workers, and whether the additional labor would benefit such firms.

The wage subsidy had no long-term impact on employment.

Profitability and sales: The program had no impact on the microenterprises’ profits or sales during the program period or after.

Survival: While wage subsidies had no impact on firm survival during the duration of the program, microenterprises that received the wage subsidy were 5.4 percentage points more likely to still be in operation 48 months after the program ended (a 6.5 percent increase from a baseline of 83.1).

Sector (Labor Markets) and Region (SSA)

Labor Markets

In Kenya, researchers partnered with the technology company Sama and Innovations for Poverty Action to conduct a randomized evaluation of Sama’s training and job referral programs. The training program provided youth from underserved communities with digital training, while the referral program provided trainees with a job referral to work with the company.

Earnings and unemployment: Providing both training and a job referral increased participants’ monthly earnings by 37 percent (from a comparison group mean monthly earnings of 13,440 Kenyan Shillings), reduced unemployment rates by 10 percentage points (relative to the comparison group’s mean unemployment rate of 30 percent), and increased their number of hours worked by 5.7 hours a week (a 22 percent increase over a comparison group mean of 27.7 hours). These effects were sustained 16 months as well as 2.5 years later and were driven by workers who ended up working for SamaDC after receiving a referral. The impact was greater among women, who reported earnings 60 percent higher than the comparison group compared to 26 percent higher among men.

Training-only did not increase employment, earnings, or hours worked relative to the comparison group 2.5 years after the treatment. In fact, there is some evidence of lower earnings at the 16 month endline, relative to the comparison group, as participants hold out for a high-quality ICT job.

Work effort: Attendance in the AI 101 training sessions was 10.2 percentage points higher among participants in the training & job referral group compared to participants in the training-only group. AI 101 completion rates were also 13.9 percentage points higher for the training & job referral group compared to the training-only group. These findings suggest that the promise of a job referral induced additional effort during training.

Happiness and financial security: Participants in the training & job referral group reported higher levels of current and projected life satisfaction than the comparison group. This group also saw improvements in financial security relative to the comparison group, as they were 10 percentage points more likely to have bank accounts (a 12 percent increase over a comparison group mean of 83.6 percent), 11 percentage points more likely to have savings accounts (a 22 percent increase over a comparison group mean of 49.4 percent), and had 58.8 percent more savings (7,724 Kenyan Shillings more than the comparison group mean of 13,131 shillings). Participants who only received training did not have these positive effects.

Providing both training and a job referral increased earnings by 37 percent and reduced unemployment rates by 10 percentage points. For women, earnings increased by as much as 60%.

Sector (Labor Markets) and Region (SSA)

Labor Markets

Côte d’Ivoire

Creating New Positions? Direct and Indirect Effects of a Subsidized Apprenticeship Program

Researchers partnered with the World Bank and the government of Cote d’Ivoire to evaluate the impact of a subsidized dual apprenticeship program targeting both youth and firms. The apprenticeship program increased participation among youth in formal apprenticeships, and participating firms hired more formal apprentices after the program was implemented.

Increased formal apprenticeships by 71% at the expense of "traditional" apprenticeships and education.

Firms Employment:Additional hiring of .6 apprentices per firm on net.

Youth Employment and Earnings: The program had no impacts on average earnings for youth 20 months after the start of the program.

Benefit to firms: No direct impacts on firm profits and revenues.

The program had no impacts on average earnings for youth 20 months after the start of the program. Apprentices in the program earned 41.7 percent less from wages and 33 percent less from self-employment relative to those in the comparison group. However, this decrease is fully compensated by the combination of an increase in total apprenticeship wages of 68 percent, as well as the monthly income provided by the program.

Sector (Labor Markets) and Region (SSA)

Labor Markets

Growing Markets through Business Training for Female Entrepreneurs: A Market-Level Randomized Experiment in Kenya

In Kenya, researchers conducted a randomized evaluation to measure the impact of the Gender and Enterprise Together (GET Ahead) business training program and a complementary mentoring program on the profitability, growth, survival of women-owned businesses and whether any gains came at the expense of nearby businesses.

Increased weekly sales by 18%, profits by 15% percent higher, survival by 3%, and higher capitalization aftre 3 years.

Increased entrepreneurial behavor: introducing nrew products, bringing in customers, using managerial practices. This is more pronounced for mentorship recipients.

Training and mentoring, 3 years after the intervention resulted in 4 more hours worked per week among treated entrepreneurs.

Compared to the average in the comparison group, weekly sales and profits among treated entrepreneurs were 18 percent and 15 percent higher, respectively, with an impact on survival of 3 percentage points higher.
Researchers find a re-investment of profits taking place, by comparing the higher capitalization available three years after the program, versus one-year effects. Results found that training and mentoring raised firm performance among participants and that these increases did not come at the expense of peer businesses in the area.