Small firms struggle to grow beyond a few employees. We introduce monitoring
devices into commuter minibuses in Kenya and randomize which minibus owners have
access to the data using a novel mobile app. We find that treated vehicle owners
modify the terms of the contract to induce higher effort and lower risk-taking from their
drivers. This reduces firm costs, and increases firm profitability. There is suggestive
evidence that some firms expand. These...
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2023/10/20
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Report
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192140
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1
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2024/06/28
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Disclosed
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Monitoring in Small Firms: Experimental Evidence from Kenyan Public Transit
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Citation
Erin Kelley; Gregory Lane; David Schonholzer.
Monitoring in Small Firms: Experimental Evidence from Kenyan Public Transit (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/099062824091693669