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.
In an effort to reduce school dropout rates in Peru, researchers have partnered with the Peruvian Ministry of Education to develop a program that gives students information about the returns to primary and secondary education.
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.
When young learners are performing below average in school, how can we close the learning gap? In this study, researchers partnered with Universidad Cayetano Heredia to design and evaluate the impact of a program aimed at helping low-performing students—mostly from low-income urban households—master basic skills in science.
In Peru, a majority of children perform below their grade level in math. Researchers evaluated the impact of an innovative math skills program on kindergartners’ numeracy and ability to recognize shapes. Results showed that the program significantly improved math scores immediately after the program ended, but the impacts had mostly dissipated one year after the program ended.
Systems of performance pay have become increasingly common in the public sector in the last decade in both developed and developing countries. Despite advances in these programs, there is great need to generate evidence on the effectiveness of performance pay systems and on how to optimize their design to suit the health sector. This impact evaluation aimed to assist Peru’s Ministry of Health in its development of a design for a pay for performance scheme.