Experimental evidence on occupational choices of microentrepreneurs

Last registered on June 23, 2025
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Pre-Trial

Trial Information

General Information

Title
Experimental evidence on occupational choices of microentrepreneurs
RCT ID
AEARCTR-0016274
Initial registration date
June 23, 2025

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
June 23, 2025, 3:11 PM EDT

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

Locations

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Primary Investigator

Name
Catia Batista
Affiliation
Nova School of Business and Economics
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Other Primary Investigator(s)

PI Name
Priscila De Oliveira
PI Affiliation
Nova School of Business and Economics
Contact Investigator

Additional Trial Information

Status
In development
Start date
2025-06-27
End date
2028-12-15
Keywords
Behavior, Firms & Productivity, Labor
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Micro-entrepreneurs compose a large share of the economy of low- and middle-income countries. Despite being the main source of income for millions of households, most micro-firms do not grow over time, do not create jobs and often have very low productivity and profitability. In this study, we aim to understand novel mechanisms underlying micro-entrepreneurs’ decision to keep operating subsistence-level firms, despite their low profitability. This project implements an experimental impact evaluation focused on understanding the role of information constraints and biased beliefs about business performance and job prospects on the occupational choices of micro-entrepreneurs.
External Link(s)

Registration Citation

Citation
Batista, Catia and Priscila De Oliveira. 2025. "Experimental evidence on occupational choices of microentrepreneurs." AEA RCT Registry. June 23. https://doi.org/10.1257/rct.16274-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Individual microentrepreneurs will receive information on their own business performance and/or local labor market information.
Intervention Start Date
2025-06-27
Intervention End Date
2025-12-15

Primary Outcomes

Primary Outcomes (end points)
• Firm outcomes: Revenues, costs, profits, inventory investment, and business survival.
• Employment outcomes: Transitions into wage work, monthly earnings, and job stability.
• Occupational mobility: Whether individuals remain self-employed, switch to wage employment, or combine both activities.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
• T1 (Business Performance Disclosure): Participants receive a report on their own firm’s business performance.

• T2 (Labor Market Information): Participants receive information on local labor market opportunities.

• T1 + T2 (Business Performance + Labor Market Information): Participants receive both treatmments.

• T0 (Control Group): Participants receive no intervention and serve as the comparison group.
Experimental Design Details
Not available
Randomization Method
Randomization done by a computer.
Randomization Unit
Microenterprise
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
1200
Sample size: planned number of observations
1200 microenterprises
Sample size (or number of clusters) by treatment arms
300 per treatment group
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Nova School of Business and Economics
IRB Approval Date
2024-05-07
IRB Approval Number
2024111
Analysis Plan