How to promote a job change of dumpsite waste pickers? Evidence from a field experiment in the Philippines

Abstract

Switching a waste disposal policy from open dumping to sanitary landfilling requires a job change of waste pickers. We conducted a field experiment at Iloilo in the Philippines which offers dumpsite waste pickers a new job of producing paper briquettes fuels. Randomly distributing four different types of offer letters, we examine how the differences in compensation schemes affect decision to take up an offer. Offer letters differ in two aspects, how to determine the level of salary and frequency of the payment. We offered an alternative job to 112 dumpsite waste pickers. 17 (15.2 percent) of them took up a new job and stopped picking waste. Those who received the offer with the once in three days payment were significantly more likely to take up compare to the everyday payment. A compensation scheme of pay per performance with once in three days attracted 27 percent of those who received it. Women were more likely to, risk averse individuals were less likely to, and patient individuals were more likely to take up a new job.