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Field
Abstract
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Before
This project asks whether microentrepreneurs in Kampala, Uganda can increase profits by locating elsewhere within the city, and if so, then whether liquidity or information frictions constrain a firm’s ability to relocate. The experiment randomly allocates conditional and unconditional cash grants of equivalent value, where the conditional grant is available to those microentrepreneurs moving from their current business location to an alternative location. Both the conditional and unconditional cash treatment will be cross-randomized with an information treatment that provides business owners with information about profit dispersion within the city.
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After
I conduct a field experiment to assess the effect of business location for microentrepreneurs. I relieve liquidity and information constraints (separately, and simultaneously) on business mobility and measure the effect on business outcomes. I investigate whether relieving these constraints enables business owners to move to parts of the city that are on average more profitable than their current locations and whether they realize income gains upon relocation. Specifically, the experiment randomly allocates conditional and unconditional cash grants of equivalent value, where the conditional grant is available to those microentrepreneurs moving from their current business locations to alternative locations. Both the conditional and unconditional cash treatment will be cross-randomized with an information treatment that provides business owners with information about city parishes that are on average more profitable than their own.
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Field
Trial End Date
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Before
April 30, 2024
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After
December 31, 2024
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Field
Last Published
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Before
December 13, 2022 11:20 PM
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After
March 22, 2023 05:58 PM
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Field
Intervention (Public)
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Before
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After
A conditional cash grant arm will allocate roughly $2 per day to any entrepreneur operating their business 3 kilometers (km) or more from their "base" (pre-intervention) business location over an approximately 10-day intervention period. The 3 kilometer conditionality is based on road travel distance. An unconditional cash grant arm will allocate the equivalent amount per day for the same number of days (i.e., is equivalent in the maximum transfer amount). Both will be allocated via mobile money; the conditional cash grant will be disbursed after verifying the entrepreneur's new location, and the unconditional cash grant will be automatically disbursed each morning of the intervention period. Those in the conditional cash grant treatment have the option to take-up the CCT on some days but not others. An entrepreneur in the CCT arm may relocate, for example, solely on days 2 and 7 of the intervention period, and receive the transfer upon verification that their business is in operation 3 km or more from their base location while not moving (and not receiving a transfer) on the other days of the intervention period. A control group will not receive any grant. All three arms are cross-randomized with an information intervention that provides entrepreneurs with information about parishes in the city which are on average more profitable for businesses in their sector than their base parish. Specifically, respondents in the information arm are told about the average profit levels in a subset of exogenously selected parishes (among those that are, on average, more profitable for businesses in their sector than their own).
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Field
Intervention Start Date
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Before
February 01, 2023
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After
March 23, 2023
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Field
Intervention End Date
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Before
April 30, 2023
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After
June 30, 2023
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Field
Primary Outcomes (End Points)
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Before
Business revenue, business income, business investment, business location, business productivity, take-up of conditional cash grant, knowledge of profit dispersion within city
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After
Business location and mobility, knowledge of profit dispersion across city, business earnings (revenue and income), business investment, inventory stock, non-inventory asset stock, savings (on mobile money account and otherwise), productivity
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Field
Primary Outcomes (Explanation)
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Before
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After
More details on primary outcomes are provided in the pre-analysis plan.
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Field
Experimental Design (Public)
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Before
Firms will be randomly allocated to the control, conditional cash grant group, or unconditional cash grant group. Each of these arms is cross-randomized with information provision, where firms are given information about how business profits vary by location across the city.
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After
Firms will be randomly allocated to the control, conditional cash grant group, or unconditional cash grant group. Each of these arms is cross-randomized with information provision, where firms are given information about other city parishes which are on average more profitable for businesses in their sector than their own.
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Field
Sample size (or number of clusters) by treatment arms
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Before
360 firms in control, 360 firms in information only, 720 firms in conditional cash grant only, 720 firms in conditional cash grant with information, 360 firms in unconditional cash grant only, 360 firms in unconditional cash grant with information
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After
480 firms in control, 480 firms in information only, 600 firms in conditional cash grant only, 600 firms in conditional cash grant with information, 360 firms in unconditional cash grant only, 360 firms in unconditional cash grant with information
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Field
Secondary Outcomes (End Points)
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Before
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After
Secondary outcomes are listed in the pre-analysis plan.
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Field
Public locations
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Before
No
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After
Yes
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