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. In the Philippines, the research team worked with BanKO to evaluate the impact of behaviorally targeted text messages on savings behavior.
Remittances are one of the largest sources of financial flows to low- and middle-income countries, and researchers and decision-makers are interested in ways to increase their development impact. One promising approach is enabling migrants to label the remittances that they send home for a specific purpose, such as education or business activities.
Around the world, 152 million children are engaged in child labor, and in the Philippines many of the children working illegally are in occupations that pose a threat to their health and safety. Because poverty is considered to be the root cause of child labor, policymakers have aimed to reduce child labor by improving the economic welfare of poor households that are using or vulnerable to using child labor.
Despite the rapid global expansion of mobile phone coverage, many isolated, rural communities do not have connectivity. In the Philippines, researchers are evaluating the impact of installing cellular towers and providing free SIM cards for mobile phone use on communication activity and frequency, social ties, access to information, migration and labor market outcomes, bargaining power and market prices, and income and employment decisions.
Youth unemployment is a key barrier to economic growth in developing countries, and is a key policy priority for the Philippines Department of Labor and Employment (DOLE). Researchers partnered with DOLE and the International Initiative for Impact Evaluation to evaluate the impact of a national employment bridging program on education outcomes, youth employability, and employment.
Scholars going back to Adam Smith and Max Weber have hypothesized that religiosity promotes economic success. In the Philippines, researchers conducted a randomized evaluation to measure the impact of an evangelical Protestant religious values and theology education program on individuals’ economic and subjective wellbeing. Results show that the program increased religiosity and incomes, but decreased self-perception of relative economic wellbeing.
Although the success of microcredit was originally attributed to the group loan model, there is little evidence on the relative impacts of individual lending versus group lending on household consumption, income, and enterprise creation. In this study, researchers randomly selected existing group-lending centers to convert to an individual liability model.
Access to savings accounts may help the poor through debt reduction, increased income through productive investments, and the ability to maintain spending during difficult times. However, there is little evidence on why people choose to open an account and whether interest rates or other account features are effective tools for expanding use.
International remittances are an important financial tool for many developing countries, and many organizations offer financial products or financial education services to help families manage the remittances they receive. Innovations for Poverty Action worked with researchers to provide families with financial products and financial education in the Philippines to test whether the two services influenced each other.
In 2012, remittances from migrant workers to developing countries were roughly three times the total amount of global foreign aid, yet little is known about how to make these funds work better.12 Researchers in this study explored this in two ways: First, they introduced a financial product that enabled migrant workers to pay schools in the Philippines
Small businesses are often believed to serve as engines for innovation, employment and social mobility, due to their flexibility in responding to new opportunities and their potential for rapid growth. In developing countries, SMEs make up a particularly large part of the economy, yet data suggests that very few small enterprises in developing countries grow into larger businesses.
Vote-buying and vote-selling obstruct the democratic process, yet they remain pervasive in many developing democracies. Researchers asked voters in the Philippines to make a simple, unenforceable promise not to accept money from politicians or to promise to vote according to their conscience, even if they do accept money, to test the impact of promises on voters’ behavior. A majority of respondents made promises not to sell their votes.
Intuition suggests that certain personality types are predisposed to loan default. Accurately identifying these personality types could have profound implications for consumer banking policy, and also important lessons for our understanding of why credit markets may fail. In partnership with the Rural Bank of Mabitac in the Philippines, researchers implemented two experiments and a survey to predict if prospective clients with various personality traits would pay back their loans.
This is one of a handful of new studies which provide a rigorous estimate of the impact of microfinance. Accepted applicants used credit to change the structures of their business investments, resulting in smaller, lower-cost, more profitable businesses. So while business investments did not actually increase, profitability did increase because the capital allowed businesses to be reorganized. This happened most often by shedding unproductive employees.