Improving workers’ performance in small firms: A randomized experiment on goal setting in Ghana

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Abstract

We report the results of a cost-effective intervention to improve workers’ performance in small cassava processing firms in Ghana. We train workers to track
their daily output and then randomly assign a sub-sample to set daily production goals. Achieving or missing a goal does not carry monetary consequences. Goal setting increases workers’ output by 16%, their productivity by 8% and
the average product of labor in firms by 13%. Goal setting is particularly effective for piece-rate workers, increasing their output by 32% and productivity
by 24%. While not conclusive, evidence suggests that goals serve as a selfregulation device
Original languageEnglish
JournalReview of Economics and Statistics
DOIs
Publication statusE-pub ahead of print - Nov 2024

Keywords

  • behavioral constraints
  • goals setting
  • management practices
  • small firms
  • informal business

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