Data and Code for: Monitoring in Small Firms: Experimental Evidence from Kenyan Public Transit

Principal Investigator(s): View help for Principal Investigator(s) Erin M. Kelley; Gregory Lane; David Schönholzer

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replication			09/20/2024 04:04:PM

Project Citation:

Kelley, Erin M., Lane, Gregory, and Schönholzer, David. Data and Code for: Monitoring in Small Firms: Experimental Evidence from Kenyan Public Transit. Nashville, TN: American Economic Association [publisher], 2024. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-10-02. https://doi.org/10.3886/E202063V1

Project Description

Summary: 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 results suggest that small firms may be able to utilize monitoring technologies to overcome problems of moral hazard and enhance their profitability.

Funding Sources: Development Impact Lab at UC Berkeley (Spring '15); PEDL (3022, 3774, and 3839)

Scope of Project

Subject Terms: economic development; monitoring; public transit

JEL Classification:
      D86 Economics of Contract: Theory
      O12 Microeconomic Analyses of Economic Development
      O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

Geographic Coverage: Nairobi, Kenya

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