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fieldwork logistics

Setting up your own firm for a firm experiment

David McKenzie's picture

The typical approach to examining how workers, consumers, or governments interact with a firm has been for researchers to find a willing firm owner and convince them to run experiments. Examples include Bandiera et al. working with a UK fruit-farmer to test different payment incentives for immigrant workers; Bloom et al. working with a Chinese travel agency to test the effect of letting workers work from home; and Adhvaryu et al. working with an Indian garment firm to measure impacts of soft-skills training for workers and of introducing LED-lighting. However, finding/persuading a firm to do the experiment that a researcher would like to do can be hard, with many of these existing samples coming about through a researcher having a former student or relative who runs one of these firms.

So what should you do if you lack a connection, or you want to do something that you cannot persuade a firm to do?

Recently, a number of researchers have taken a different approach, which is to set up and run for themselves a firm in order to answer research questions. I thought I would give some examples of this work, and then discuss some of the issues that arise or things to think about when deciding about pursuing this research strategy.