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Career Incentives and Turnover: Evidence from Ethiopian Manufacturing Workers
Last registered on May 10, 2021

Pre-Trial

Trial Information
General Information
Title
Career Incentives and Turnover: Evidence from Ethiopian Manufacturing Workers
RCT ID
AEARCTR-0006998
Initial registration date
May 09, 2021
Last updated
May 10, 2021 11:40 AM EDT
Location(s)

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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
2021-05-10
End date
2022-04-30
Secondary IDs
Abstract
High turnover rates are a common issue in manufacturing firms in developing countries. In one of the main industrial parks in Ethiopia, the government has speculated that misperceptions regarding job characteristics among new hires contribute to high turnover rates. We propose to implement a new information treatment, with particular focus on long-run promotion incentives, and analyze the effect on belief update and turnover decisions. We will sample 2,000 new female young workers before they start working, and randomly provide information on entry-level operators, medium position, and high position. We plan to follow up workers within 1 week and after 6 months to measure their update in perceptions of salary and promotion within the industrial park and outside, whether workers have already left the industrial park, welfare outcomes, productivity, and skills.
External Link(s)
Registration Citation
Citation
Lauletta, Maximiliano and David Wu. 2021. "Career Incentives and Turnover: Evidence from Ethiopian Manufacturing Workers." AEA RCT Registry. May 10. https://doi.org/10.1257/rct.6998-1.0.
Sponsors & Partners

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Experimental Details
Interventions
Intervention(s)
Intervention Start Date
2021-05-10
Intervention End Date
2021-08-31
Primary Outcomes
Primary Outcomes (end points)
Updated perceptions of job characteristics of the industrial park, workers' turnover, workers' productivity
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Workers' welfare outcomes (income, consumption, health), plans in the future (education, marriage, migration), skills (general and specific), work attitude
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
We will implement a cross-randomized experiment on 2000 female young workers. For the first treatment arm (entry-level operator), we will provide information of salary as an entry-level operator. For the second treatment arm (promotion), we will provide salary and promotion likelihood of a higher position after 6 months. Within the second treatment arm, for half of the workers, we will provide information of the medium-level position; for another half, we will provide information of the high-level position.
Experimental Design Details
Not available
Randomization Method
Randomization done in office by a computer
Randomization Unit
Individual
Was the treatment clustered?
Yes
Experiment Characteristics
Sample size: planned number of clusters
22 firms and 60 days of hiring
Sample size: planned number of observations
2,000
Sample size (or number of clusters) by treatment arms
500 control, 500 only provided with entry-level operator information, 500 only provided with promotion information (250 with medium-level position, 250 with high-level position), 500 both treatment (250 with medium-level position, 250 with high-level position)
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