Introducing Piece-rate Pay in Bangladeshi Factories: Does Managerial and Worker Training Prevent Pitfalls and Improve Worker and Factory Outcomes?

Last registered on April 16, 2024

Pre-Trial

Trial Information

General Information

Title
Introducing Piece-rate Pay in Bangladeshi Factories: Does Managerial and Worker Training Prevent Pitfalls and Improve Worker and Factory Outcomes?
RCT ID
AEARCTR-0013051
Initial registration date
April 08, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
April 16, 2024, 1:03 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Region

Primary Investigator

Affiliation
Tufts University

Other Primary Investigator(s)

PI Affiliation
Tufts University

Additional Trial Information

Status
In development
Start date
2024-04-22
End date
2025-03-10
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Does a training program for factory managers, supervisors, and workers lead to better performance and worker outcomes in factories that are planning to introduce a pay incentive system? We will also test whether any performance or worker outcomes are moderated by social norms deterring sexual harassment, rehumanization of workers, power dynamics, incentive pay, and accountability. We first looked at this question in a study of a management training program in Vietnam. Now we are looking at effects of both the manager training and a whole-workforce rehumanization training in factories in Bangladesh. We also plan to look at whether rehumanization of workers affects supervisors' information processing.
External Link(s)

Registration Citation

Citation
Brown, Drusilla and Drusilla Brown. 2024. "Introducing Piece-rate Pay in Bangladeshi Factories: Does Managerial and Worker Training Prevent Pitfalls and Improve Worker and Factory Outcomes?." AEA RCT Registry. April 16. https://doi.org/10.1257/rct.13051-1.0
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Experimental Details

Interventions

Intervention(s)
We are evaluating two training programs in Bangladeshi apparel and footwear factories. The first program is delivered to factory management and focuses on identifying and preventing sexual harassment, creating promotion opportunities for women, increasing supervisor accountability, and introducing pay incentives in a thoughtful way. The second program is delivered to the entire workforce via a train-the-trainer approach, and focuses on rehumanizing workers in the eyes of supervisors and managers.
Intervention Start Date
2024-05-01
Intervention End Date
2025-03-10

Primary Outcomes

Primary Outcomes (end points)
We are anticipating the following outcomes.
Rehumanize workers in the minds of managers/supervisors so that they accurately process information related to the relationship between abuse of workers and firm performance.
Following rehumanization, managers accurately interpret data about labor management practices and firm outcomes.
Factories develop organizational norms related to sexual harassment, women as supervisors, supervisor accountability for decisions and clear communication about pay.
The factory introduces high performance systems such as incentive pay, accountability and promotional ladders without adversely affecting workers.
Primary Outcomes (explanation)
Rehumanization is indicated if managers and supervisors believe that workers can feel physical and emotional pain, are intelligent, think at a high level and understand complicated ideas and workers feel less angry, frustrated small or unimportant in interactions with supervisors and more willing to voice opinions at work.
Information processing is indicated by accurately recalling details about HR systems and worker reports and manager beliefs about the relationship between labor management practices such as paying workers as promised, treating workers respectfully and providing safe and comfortable working conditions with firm performance including product quality and productivity.
The factory has clear policies concerning the review of supervisor decisions related to workers and supervisors believe that they are accountable for decisions, has clear rules about promotion that value the traits typically possessed by women and women are more likely to be promoted, and has low tolerance for sexual harassment.
Firm performance is measured by productivity, product quality, order size, relationship with buyers, absenteeism, late-coming and workforce turnover. Positive outcomes for workers include reduced sexual harassment, verbal abuse, accidents and injuries, excess hours and burnout.

Secondary Outcomes

Secondary Outcomes (end points)
Factories sustain and take ownership of investments in humane workplace investments after the intervention ends.
Secondary Outcomes (explanation)
Sustainability is indicated when firms undertake investments that are not donor supported, employ high performing management techniques, are socially compliant, have reduced workforce turnover and high job satisfaction.

Experimental Design

Experimental Design
The study will include factories in Dhaka and Chittagong, Bangladesh. In Dhaka, we will start with a baseline survey in all factories, then our training partner will implement the rehumanization training (known as Restart) in Batch 1 factories. Next we will do a midline survey in all factories, then Batch 2 factories will receive Restart training. Next we will do an endline survey in all factories. Finally, all factories will receive the management training (known as BBW). In Chittagong, all factories will receive the Restart training, followed by a baseline survey, then Batch 3 factories will receive BBW training. Next, all factories will have a midline survey, and then Batch 4 factories will receive BBW training. Finally, all factories will have an endline survey.

The 8 factories in Bangladesh will receive one of two training protocols.

Four factories in Chittagong will participate in a study of the worker portion of the training. Before any training occurs, participating factories will be randomly assigned to one of two batches: batch 1 and batch 2. A baseline data collection will be conducted in all participating Chittagong factories. Factories in batch 1 will then receive worker training. After a midline data collection, factories in batch 2 will be provided the worker training. Once worker training is complete, an endline data collection will be conducted. Chittagong factories will then be optionally offered the manager portion of the training.

Factories in Dhaka will participate in a study of the manager portion of the training. Prior to any manager training, all factories in Dhaka will complete the worker portion of the training. Participating factories will then be randomly assigned to one of two batches: batch 1 and batch 2. A baseline data collection will be conducted in all participating factories. Factories in batch 1 will then receive manager training. This will be followed by a midline data collection. After the midline, manager training will be conducted in factories in batch 2. The study ends with an endline data collection.
Experimental Design Details
Not available
Randomization Method
Randomization done in office by a computer.
Randomization Unit
Randomized at the factory level.
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
8 factories
Sample size: planned number of observations
Participants in the training will be 160 factory managers, supervisors and workers. Participants in the survey will be 1600 workers, supervisors and managers.
Sample size (or number of clusters) by treatment arms
Participants in the training will be 160 factory managers, supervisors and workers.
Participants in the survey will be 1600 workers, supervisors and managers.

1760 participants with three observations each.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
For our variables of interest, we have in other studies measured a standard deviation ranging from a low of 1.06 (necessitating a sample of 179) to a high of 49.1 (necessitating a sample of 1665) to detect a treatment effect at the 5% level.
Supporting Documents and Materials

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IRB

Institutional Review Boards (IRBs)

IRB Name
Social Behavioral and Educational Research, Tufts University
IRB Approval Date
2024-03-11
IRB Approval Number
STUDY0000899
Analysis Plan

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