Children and parents sometimes make ill-informed educational choices, resulting in unrealized educational goals, children dropping out of school, and children joining the labor force. In partnership with Innovations for Poverty Action and the Ministry of Education in Peru, researchers designed and rigorously evaluated two interventions intended to improve decision-making about education and time-use by providing schoolchildren and their families with information about the returns to education.
- Students’ and parents’ perceptions of the financial benefits to education increased. Accessing information about the social and financial returns to education via videos and an interactive tablet application corrected misconceptions about the benefits of education.
- Dropout rates fell. Information had a significant negative effect on dropout rates in both rural and urban areas.
- Child labor effects were mixed. Videos decreased child labor for girls in urban areas, but did not affect child labor in rural areas. The tablet application reduced child labor among 6th graders in rural areas, but not among other groups.
- The Ministry of Education in Peru is continuing the intervention in 2,001 secondary schools. The marginal cost of the video campaign was less than US$0.05 per student (not including the fixed costs of producing the video). Given the low cost and promising results, the Ministry of Education is scaling the use of these videos in after school programs.
* These results are preliminary and may change after further data collection and analysis.
The Strategic Planning Secretariat of the Ministry of Education, with technical assistance from the Abdul Latif Jameel Poverty Action Lab (J-PAL) and Innovations for Poverty Action (IPA), is implementing an education lab for innovations. This Lab is an innovative approach to policymaking, which creates a learning space to design low cost interventions that have the potential to trigger big impacts in learning and implementation outcomes. The proposed interventions will be rigorously tested using the Ministry’s administrative data systems when available, with the aim of scaling those innovations that prove to be effective. The Lab’s combination of low-cost interventions with the use of administrative data offers a highly efficient scheme for innovation and design of public policies based on evidence, both in terms of resources and availability of timely results without interfering with the implementation of the Ministry’s interventions.
Read more about MineduLAB here.
A multi-faceted program comprising a grant of productive assets, training, coaching, and savings has been found to build sustainable income for those in extreme poverty. We focus on two important questions: whether a mere grant of productive assets would generate similar impacts (it does not), and whether access to a savings account and a deposit collection service would generate similar impacts (it does not).
Past research suggests that improving citizen political knowledge and coordination can increase political participation and accountability and help channel grievances through democratic processes rather than conflict. A randomized field experiment in Peru demonstrates that civic education can sometimes have perverse effects on these outcomes. I find that civic education workshops reduce participation in the district’s “participatory budgeting” process and increase support for protest as a tool for sanctioning politicians. Although the intervention increases the initiation of recalls for poor-performing mayors, these mayors respond to the recall threat by further reducing their effort. Taken together the evidence suggests that improved information and coordination of local elites is not sufficient to improve government performance where it has previous lagged.
Improving learning among low-achieving students is a challenge in education. We present results from the first randomized experiment of an inquiry-based remedial science education program for low-performing elementary students in a developing-country setting. Third-grade students in 48 low-income public elementary schools in Metropolitan Lima who score at the bottom half of their school distribution in a science test taken at the beginning of the school year are randomly assigned to receive up to 16 remedial science tutoring sessions of 90 minutes each. Control group compliance with assignment is close to perfect. Treatment group compliance is 40 percent, equivalent to 4.5 tutoring sessions, or a 4 percent increase in total science instruction time. Despite the low treatment intensity, students assigned to the remedial sessions score 0.12 standard deviations higher on a science endline test, with all gains concentrated among boys. We find no evidence of remedial education producing within-student spillovers to other subject areas (math or reading) or spillovers on other students in the classroom. We conclude that low-intensity remedial education can have an effect on science learning among low-achieving students
Reminders can increase savings deposits at almost no cost to providers
Despite good intentions, people often make less-than-optimal financial choices. In this series, we match insights from our global research in behavioral economics with specific financial product and service opportunities for U.S. providers. Providers can use these evidence-based insights to expand financial inclusion, improve client offerings, and continue to promote financial health.
Providing access to savings accounts is an important step in bringing financial services to the poor, but access alone does not guarantee people will save. Many people struggle to develop good savings habits because they put off saving until a future time, or face so many seemingly urgent needs today that it is difficult to save for tomorrow, or they simply forget to save. Reminders that bring savings goals to the “top of mind” are a low-cost way to address these barriers and help clients reach their savings goals.
This brief is part of IPA’s Nudges for Financial Health series, which is available as a combined booklet here. The other briefs in the series can be downloaded individually: The Power of Doing Nothing, Count on Commitment.