Misperceptions of Career Incentives and Turnover: Evidence from Ethiopian Manufacturing Workers

Last registered on September 08, 2022

Pre-Trial

Trial Information

General Information

Title
Misperceptions of Career Incentives and Turnover: Evidence from Ethiopian Manufacturing Workers
RCT ID
AEARCTR-0006998
Initial registration date
May 09, 2021

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
May 10, 2021, 11:40 AM EDT

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

Last updated
September 08, 2022, 12:03 PM EDT

Last updated is the most recent time when changes to the trial's registration were published.

Locations

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Primary Investigator

Affiliation
UC Berkeley

Other Primary Investigator(s)

PI Affiliation
UC Berkeley

Additional Trial Information

Status
In development
Start date
2022-03-01
End date
2022-12-31
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
High turnover rates are a major issue in industrialization of developing countries. In one of the major industrial parks in Ethiopia, we identify a key determinant of turnover from our pilot study – career incentives. Despite the importance of career incentives during job search, workers have substantial misperceptions of career incentives within the industrial park, and it is difficult for workers to learn the true career incentives from on-the-job experience. We propose an intervention that provides accurate information of promotion likelihood and salary after promotion to understand how the intervention might help workers learn about the career incentives, and to causally estimate the effect of misperceptions of career incentives on workers’ turnover. We plan to sample 1,200 new female young workers, randomly provide the information of the career path on 400 workers, and follow up workers after 45 days and 6 months to understand how misperceptions prevent workers from optimal job search, and the causal effect on long-run employment and welfare outcomes.
External Link(s)

Registration Citation

Citation
Wu, David and Maximiliano Lauletta. 2022. "Misperceptions of Career Incentives and Turnover: Evidence from Ethiopian Manufacturing Workers." AEA RCT Registry. September 08. https://doi.org/10.1257/rct.6998-2.1
Sponsors & Partners

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Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2022-03-14
Intervention End Date
2022-06-30

Primary Outcomes

Primary Outcomes (end points)
Updated perceptions of job characteristics of the industrial park, whether workers stay in the firm in the follow-up surveys
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Worker's effort (absent days, overtime, performance pay collected from firms' records), welfare outcomes (income, consumption, health), plans in the future (education, marriage, migration), skills (cognitive and dexterity)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We will implement a clustered randomized experiment on 1,200 female young workers. Workers will be sampled over the course of 50 days. We will randomly select 25 days, randomly select 2/3 of the workers on those days, and provide them with true promotion likelihood ("Out of 100 entry-level workers, how many of them will be promoted to upper level?") and salary after promotion ("What's the average salary of upper-level positions?").
Experimental Design Details
Not available
Randomization Method
We will generate a randomization file before the intervention that pre-determines workers with certain IDs on certain days will be treated.
Randomization Unit
The randomization is clustered by days of hires. Within the treated clusters, individuals will be randomly treated.
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
50 days of hiring
Sample size: planned number of observations
1,200
Sample size (or number of clusters) by treatment arms
25 treated clusters (600 workers), 25 control clusters (600 workers). Within treated clusters, 400 out of 600 workers are treated.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
The Committee for Protection of Human Subjects
IRB Approval Date
2021-05-04
IRB Approval Number
2020-04-13164
Analysis Plan

Analysis Plan Documents

Pre-analysis plan, Misperceptions of Career Incentives and Turnover: Evidence from Ethiopia

MD5: 99169fa05299a00268074d6fd272f61b

SHA1: 97c2052660f16692bd9c8d8f052a8126db4b25d2

Uploaded At: September 08, 2022