The Effect of One-On-One Assistance on the Compliance with Labor Regulation. A Field Experiment in Extremely Vulnerable Settings

Type Working Paper
Title The Effect of One-On-One Assistance on the Compliance with Labor Regulation. A Field Experiment in Extremely Vulnerable Settings
Author(s)
Publication (Day/Month/Year) 2016
URL http://www.um.edu.uy/docs/The_effect_of_one_to_one_assistance.pdf
Abstract
This is the first paper to analyze the effects of intense personal assistance on the compliance with labor
regulation, within a population of deeply disadvantaged informal workers, using a field experiment. We
randomly assign one-on-one assistance to these workers, and, within this treatment group, we randomly
assign money to cover the cost of fulfilling the legal requirements to get a permit to work on the streets. One
month after the intervention, we find that a worker who receives one-on-one assistance is three times more
likely to comply with the legal documentation required by the government than a worker in the control
group. We also find that a worker who receives both one-on-one assistance and cost coverage is four times
more likely to comply with the legal requirements. The findings of this study shed light on strategies to help
highly vulnerable workers to comply with labor regulations. (JEL C93, D04, J46, J62, I30)

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