Using 315 newly established microfinance groups between August and October 2012, this experimental study diversified the monthly earnings of BRAC’s Community Health Promoters (CHPs) Program. While the information experiment of 6,845 women tested the effects of financial incentives on perceptions about the job, the recruitment experiment of 4,863 potential applicants evaluated the effects on the application pool. The findings demonstrate that higher financial incentives attract 36% more applicants increasing the probability of filling a vacancy. On the other hand, the signal they convey crowds out the pro-social candidates who stay longer on the job by 13 percentage points and perform better by 17% more.
Author: Deserranno, Erika
Type: Journal Article
Year: 2019