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Nudging Firms to Increase Labor Inclusion
Last registered on October 18, 2019

Pre-Trial

Trial Information
General Information
Title
Nudging Firms to Increase Labor Inclusion
RCT ID
AEARCTR-0004813
Initial registration date
October 17, 2019
Last updated
October 18, 2019 10:43 AM EDT
Location(s)

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Primary Investigator
Affiliation
Pontificia Universidad Católica de Chile
Other Primary Investigator(s)
PI Affiliation
Inter-American Development Bank
Additional Trial Information
Status
On going
Start date
2019-05-01
End date
2021-12-31
Secondary IDs
Abstract
In early 2018, Chile enacted a new regulation on the labor inclusion of people with disabilities, in the form of law 21,015. This law dictates that all public firms and institutions with more than 100 employees must reserve 1% of its positions for people with disabilities. Taking this into account, the Chilean scenario presents a far more promising context for firm compliance than other countries in the region where quotas are set at 4% or 5%. This paper examines whether firm compliance to the newly established quota can be nudged through messages embodied with behavioral insights. The experiment includes designing the letters, randomizing the firms, sending the letters and monitoring the implementation.
External Link(s)
Registration Citation
Citation
Duryea, Suzanne and Claudia Martinez A.. 2019. "Nudging Firms to Increase Labor Inclusion ." AEA RCT Registry. October 18. https://doi.org/10.1257/rct.4813-1.0.
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Experimental Details
Interventions
Intervention(s)
The intervention consists in sending letters to firms with information about the compliance of Law 21.015 in Chile. We designed three types of messages: i) informative; ii) informative + positive social norms, including the benefits of inclusion of PwD; and iii) informative + deterrence, including the threat of fine. The letters are sent by email, because it allows tracking its reception, and considering that in certain context emails have been more effective than letters in delivering the same message in the tax literature. With the objective of increasing the saliency of the emails, and as it is standard in the tax literature, the letters were sent throughout an institutionalized mail server.
Intervention Start Date
2019-05-01
Intervention End Date
2021-12-31
Primary Outcomes
Primary Outcomes (end points)
Compliance of the Law, type of Law compliance, numbers of PwD hired, number of new hiring of PwD.
Primary Outcomes (explanation)
Our main outcomes of interest are measures of law compliance and success the formal labor market: employment of PwD and earnings among firms.
Secondary Outcomes
Secondary Outcomes (end points)
Additionally, we plan to evaluate effects on the firms with measuring their profit rate and number of employees. We plan to measure these through whichever data source we can obtain permission to use, likely the Chilean Unemployment Insurance data.
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
Our sample includes all the Chilean organizations with i) commercial legal personality; ii) complete self-reported information of the number of employees using the data from the Chilean Tax Authority; iii) 100 or more employees; and iv) a currently active email address. There are 7,878 firms that fulfill these characteristics. They are randomized among the four groups stratifying by the number of employees, the principal economic activity of the firm, and geographic location. The sample is divided in four groups: i) control; ii) information; iii) information + benefits of inclusion (positive social norms); iv) information + threat of fine (deterrence).
Experimental Design Details
Not available
Randomization Method
Computerized (STATA programming)
Randomization Unit
Firms
Was the treatment clustered?
No
Experiment Characteristics
Sample size: planned number of clusters
0
Sample size: planned number of observations
7,878
Sample size (or number of clusters) by treatment arms
1,970 (aprox)
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
Comité Ético Científico en Ciencias Sociales, Artes y Humanidades, Pontificia Universidad Católica de Chile
IRB Approval Date
2019-01-23
IRB Approval Number
190123003