Face-to-Face vs. Virtual Assistance to Entrepreneurs: Evidence from a Field Experiment in Brazil

Face-to-Face vs. Virtual Assistance to Entrepreneurs: Evidence from a Field Experiment in Brazil

Cesar Zucco, Anna-Katharina Lenz, Rafael Goldszmidt, and Martin Valdivia
Economics Letters 188 (2020) 108922

Abstract

We conduct a field experiment on formalization and subsequent tax compliance of informal entrepreneurs in Rio de Janeiro favelas. Providing in-person one-on-one training with the offer of one-on-one assistance with the formalization process increased information levels about the program, intention to formalize, formalization, and subsequent tax compliance. Providing essentially the same information and assistance via instant messaging produced similar effects on knowledge and intention to formalize, but no effects on formalization itself.