People often report wanting to save more money than they actually do, and rigorous evidence has shown that simple reminders to save can be effective at helping people save more. Researchers working with IPA carried out evaluations in Ghana, Peru, the Philippines, and the Dominican Republic to build the evidence base about text-message reminders to save.
Expanding credit access to small- and medium-sized agricultural producers is an important policy challenge, given the millions of livelihoods affected along its supply chain. Researchers used data on loans to coffee processors across 24 developing countries to study credit and insurance constraints in the coffee sector and assessed whether relationships between lenders and coffee mills could mitigate strategic default.
One reason children from disadvantaged backgrounds receive less schooling and join the labor force at younger ages with fewer skills may be that they and their families lack crucial information needed to make the right long run investment decisions regarding their human capital. In Peru, IPA and J-PAL worked with researchers and the Ministry of Education to evaluate at scale two low-cost ways of providing relevant information to help students and their families make more informed decisions.
Many adults over age 65 across the world live in extreme poverty, however only 20 percent of seniors worldwide receive any form of pension. Non-contributory pension programs for seniors living below a certain income threshold may improve food consumption, mental health, and lower reliance on younger family members for economic support.
Gender-based violence is a global problem, but little rigorous research exists on the effectiveness of interventions that aim to reduce and prevent such violence. Violence is the result of the complex interplay of several factors, including social norms and attitudes.
Public training sessions on democratic processes and ideals are a popular tool that aims to improve the performance of governments with “bottom-up” accountability via increased political knowledge and public participation. Researchers evaluated an accountability workshop program, which educated citizens on the distribution of extractive industry tax revenues and the formal means of local political participation.
Credit reports may help low-income borrowers better understand their credit histories and allow them to make better borrowing decisions. However, even when credit report tools are freely available, borrowers rarely check their scores. Awareness campaigns may make credit reports more salient to consumers and in turn increase the use of credit reports in financial decision-making.
Pension systems aim to prevent poverty among the elderly and to help ensure people have adequate income across their lifetime. But, only a small proportion (25 percent) of the global labor force contributes or accrues pension funds, and in developing countries essentially no small firms’ employees have pension coverage.
Why do people sometimes make poor financial choices? What drives individuals’ decisions about what to do with their money? IPA is partnering with a private shipping company in Lima, Peru to deliver a financial coaching program that aims to address behavioral biases that could be preventing their employees from making healthy financial choices. Researchers will evaluate the impact of the program on the employees’ financial decisions related to credit, savings, and money management.
More than one fifth of the world’s population lives on less than US$1.25 per day. While many credit and training programs have not been successful at raising income levels for these ultra-poor households, recent support for livelihoods programs has spurred interest in evaluating whether comprehensive “big push” interventions may allow for a sustainable transition to self-employment and a higher standard of living.
Microfinance clients are usually too poor to offer any property as collateral, so micro-lenders use alternative methods to encourage repayment. The most common methods are: (1) threatening to not offer loans in the future to clients who default and (2) using peer pressure mechanisms to ensure that borrowers repay.
Financial products have the potential to help the poor, yet most financial institutions are driven by commercial goals, and their staff may not be incentivized to offer products most suitable to low-income clients. In this study in Peru, participants visited banks and pretended to be shopping for financial products in order to gather information on how bank staff treat different types of clients.
Many people in developing countries rely on risky and expensive methods of managing their assets. In this study, researchers are evaluating whether lowering the cost of accessing savings accounts through local point-of-sale enabled agents and providing financial literacy training impacts the saving and consumption patterns of cash transfer beneficiaries in rural Peru.
Very little evidence from behavioral economic research exists from low-income countries, as most such research has taken place in Western industrialized countries. The World Bank’s 2015 World Development Report: Mind and Society focuses on psychological, social, and cultural influences on development, requiring the collection and analysis of data on psychological biases in non-industrialized countries. IPA was responsible for data collection for the report in Peru.
Research suggests that children who grow up in violent environments are more likely to use aggression to resolve conflicts, and that exposure to such violence can impact student learning. In addition, some studies indicate that it is important for children to build skills that enable them to develop sympathy and empathy for others, and maintain positive relationships.