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We evaluate, using a randomized trial, two school-based financial literacy education programs in government-run primary and junior high schools in Ghana. One program integrated financial and social education, whereas the second program only offered financial education. Both programs included a voluntary after-school savings club that provided students with a locked money box. After nine months, both programs had significant impacts on savings behavior relative to the control group, mostly because children moved savings from home to school. We observed few other impacts. We do find that financial education, when not accompanied by social education, led children to work more compared to the control group, whereas no such effect is found for the integrated curriculum; however, the difference between the two treatment effects on child labor is not statistically significant.
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Working Paper
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March 30, 2015
English
Beginning with the seminal article in 1971 by Lucas and Prescott, economists have examined investments under uncertainty in a variety of contexts. Becker et al. (1977) applied this concept to marriage suggesting that increased uncertainty in marriage (i.e., the likelihood of separation or divorce) reduces the incentive for spouses to invest in marriagespecific capital. Several studies have found that reducing the barriers to marital dissolution, through no-fault divorce laws for example, is associated with lower investments in marriage-specific goods (Landes, 1978; Johnson and Skinner, 1986; Peters, 1986; Lommerud, 1988; Lundberg and Rose, 1999; Stevenson, 2007).1 Similar studies have found that with greater uncertainty about paternity, 1 Other papers in economics have examined the impact of outside options in marriage and contracts affecting marital outcomes (Rasul, 2006; Rasul and Mathoushek, 2008; South and Lloyd, 1995). men are less willing to invest in their alleged offspring and...
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Working Paper
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March 30, 2015
English
UsingarandomizedevaluationinKenya, wemeasurehealthimpacts ofspring protection, an investment that improves source water quality. We also estimate households’ valuation of spring protection and simulate the welfare impacts of alternatives tothe current system of common property rights in water, which limits incentives for private investment. Spring infrastructure investments reduce fecal contamination by 66%, but household water quality improves less, due to recontamination. Child diarrhea falls by one quarter. Travel-cost based revealed preference estimates of households’ valuations are much smaller than both stated preference valuations and health planners’ valuations, and are consistent with models in which the demand for health is highly income elastic. We estimate that private property norms would generate little additional investment while imposing large static costs due to above-marginal-cost pricing, private property would function better at higher income levels or under water s...
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Published Paper
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March 27, 2015
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This document presents the preliminary results of the exploratory phase of the Secured Transaction Reform impact evaluation; the degree to which the inability to use movable assets as collateral seem to limit firms’ access to credit; Financial Institutions’ (FI) expectations on the utility of the new regulation; and the use of the registry since its launch, since February 24th , through September 30th , 2014.
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Report
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March 25, 2015
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Short-run subsidies for health products are common in poor countries. How do they affect long-run adoption? A common fear among development practitioners is that one-off subsidies may negatively affect long-run adoption through referencedependence: People might anchor around the subsidized price and be unwilling to pay more for the product later. But for experience goods, one-off subsidies could also boost long-run adoption through learning. This paper uses data from a two-stage randomized pricing experiment in Kenya to estimate the relative importance of these effects for a new, improved antimalarial bed net. Reduced form estimates show that a one-time subsidy has a positive impact on willingness to pay a year later inherit. To separately identify the learning and anchoring effects, we estimate a parsimonious experiencegood model. Estimation results show a large, positive learning effect but no anchoring. We black then discuss the types of products and the contexts inherit for which t...
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Published Paper
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March 20, 2015
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We conduct a randomized evaluation in urban Ghana in which micro and small tailoring enterprises receive advice from an international consulting firm, cash, both, or neither. We find that all three treatments lead to their immediate intended effects: changed business practices and higher investment. However, both treatments lead to lower profits on average in the short term. Then, in the long run, the micro-entrepreneurs in the treatment group disinvest relative to those in the control group, and revert back to their prior scale of operations and business practices. 
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Working Paper
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March 11, 2015
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What should be considered when developing a literacy intervention that asks teachers to implement new instructional methods? How can this be achieved with minimal support within existing policy? We argue that two broad sets of considerations must be made in designing such an intervention. First, the intervention must be effective by bridging the gap between current teacher practice and the scientific literature on effective instruction. This broad consideration is detailed with 10 design recommendations. Second, the intervention must be amenable to being scaled-up and mainstreamed as part of government policy. This involves being (i) simple and replicable; (ii) well received by teachers; and (iii) cost effective. The paper describes how these factors were considered in the design of a literacy intervention in government primary schools in coastal Kenya. It also includes reactions from teachers about the intervention and their change in knowledge.
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Published Paper
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March 01, 2015
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Small and medium enterprises are the biggest contributor to employment across countries, providing over 66% of jobs on average. SMEs are also thought to drive innovation, social mobility, and productivity. However, businesses in developing countries grow less than firms in developed countries due to constraints such as limited access to finance, low levels of human capital, and inefficient markets. Because these constraints hinder the SME sector’s contribution to job creation and economic growth, governments and other organizations in developing countries spend billions of dollars each year on programs that aim to address the barriers to growth for SMEs. Unfortunately, little evidence exists on how to effectively address these constraints to unlock SME growth. Lea este resumen es español aquí.
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Brief
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March 01, 2015
English
Seven randomized evaluations from around the world show that microcredit does not have a transformative impact on poverty, but it can give low-income households more freedom in optimizing the ways they make money, consume, and invest.   Key Results: Demand for many of the microcredit products was modest. In Ethiopia, India, Mexico, and Morocco, when MFIs offered loans to eligible borrowers, take-up ranged from 13 to 31 percent, which was much lower than partner MFIs originally forecasted. Expanded credit access did lead some entrepreneurs to invest more in their businesses. In Bosnia and Herzegovina and Mongolia, access to microcredit increased business ownership. All but one study showed some evidence of expanded business activity, but these investments rarely resulted in profit increases. Microcredit access did not lead to substantial increases in income. Despite some evidence of business expansion, none of the seven studies found a significant impact on average household income fo...
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Brief
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February 26, 2015
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In this paper we investigate whether access to savings accounts affects risk attitudes and intertemporal choices. We exploit a field experiment that randomized access to savings accounts among a largely unbanked population of Nepalese villagers. One year after the accounts were introduced, we administered lottery-choice and intertemporal-choice tasks to the treatment and control groups. We find that the treatment is more willing to take risks in the lottery-choice task and is more responsive to changes in experimental interest rates in the intertemporalchoice task. The results on time discounting are less conclusive, but suggest that the treatment group is more willing to delay receiving money. These results suggest that access to formal savings devices has a positive feedback loop for poor families by increasing their willingness to take risks and to delay gratification.
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Working Paper
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February 01, 2015
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The Zambia Health Bulletin is designed to keep stakeholders and partners informed of on-going research in the Zambian health sector.
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Report
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February 01, 2015
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A body of literature suggests that relationships affect contractual and market outcomes, but how does market structure affect the economics of relationships? This paper provides microeconometric evidence that upstream market structure affects the value of downstream relationships between retailers and buyers. In our setting, a monopoly ice manufacturer sells through independent retailers to fishermen buyers in Sierra Leone. We demonstrate that a shock that increases upstream competition among manufacturers improves the contractual terms offered by retailers to buyers. Under the monopolistic manufacturer, we document that late deliveries are common due to outside demand shocks. To help mitigate this uncertainty, retailers prioritize loyal customers when faced with shortages, and buyers respond by rarely switching retailers. When manufacturers compete, prices fall, quantities increase and services improve with fewer late deliveries. Entry upstream also disrupts collusion among retailers...
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Working Paper
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January 24, 2015
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This paper tests how migrants’ willingness to remit changes when given the ability to direct remittances to educational purposes using different forms of commitment. Variants of a dictator game in a lab-in-the-field experiment with Filipino migrants in Rome are used to examine remitting behavior under varying degrees of commitment. These range from the soft commitment of simply labeling remittances as being for education, to the hard commitment of having funds directly paid to a school and the student’s educational performance monitored. We find that the introduction of simple labeling for education raises remittances by more than 15%. Adding the ability to directly send this funding to the school adds only a further 2.2%. We randomly vary the information asymmetry between migrants and their most closely connected household, but find no significant change in the remittance response to these forms of commitment as information varies. Behavior in these games is then shown to be predictiv...
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Published Paper
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January 07, 2015
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We report results from a randomized evaluation of a microcredit program introduced in rural areas of Morocco in 2006. Thirteen percent of the households in treatment villages took a loan, and none in control villages did. Among households identified as more likely to borrow, microcredit access led to a significant rise in investment in assets used for self-employment activities, and an increase in profit, but also to a reduction in income from casual labor. Overall there was no gain in income or consumption. We find suggestive evidence that these results are mainly driven by effects on borrowers, rather than by externalities.
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January 01, 2015
Despite regulatory efforts designed to make it easier for firms to formalize, informality remains extremely high among firms in Sub-Saharan Africa. In most of the region, business registration in a national registry is separate from tax registration. This paper provides initial results from an experiment in Malawi that randomly allocated firms into a control group and three treatment groups: a) a group offered assistance for costless business registration; b) a group offered assistance with costless business registration and (separate) tax registration; and c) a group offered assistance for costless business registration along with an information session at a bank that ended with the offer of business bank accounts. The study finds that all three treatments had extremely large impacts on business registration, with 75 percent of those offered assistance receiving a business registration certificate. The findings offer a cost-effective way of getting firms to formalize in this dimension...
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Working Paper
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January 01, 2015
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We explore the impact of reduced transaction costs on risk sharing by estimating the effects of a mobile money innovation on consumption. In our panel sample, adoption of the innovation increased from 43 to 70 percent. We find that, while shocks reduce consumption by 7 percent for nonusers, the consumption of user households is unaffected. The mechanisms underlying these consumption effects are increases in remittances received and the diversity of senders. We report robustness checks supporting these results and use the four-fold expansion of the mobile money agent network as a source of exogenous variation in access to the innovation.
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Published Paper
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December 31, 2014
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We conduct a field experiment to evaluate the effect of extrinsic rewards, both financial and non-financial, on the performance of agents recruited by a public health organization to promote HIV prevention and sell condoms. In this setting: (i) non-financial rewards are effective at improving performance; (ii) the effect of both rewards is stronger for pro-socially motivated agents; (iii) the effect of both rewards is stronger when their relative value is higher. The findings illustrate that extrinsic rewards can improve the performance of agents engaged in public service delivery, and that non-financial rewards can be effective in settings where the power of financial incentives is limited.
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Published Paper
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December 30, 2014
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Some education policymakers focus on bringing down pupil–teacher ratios. Others argue that resources will have limited impact without systematic reforms to education governance, teacher incentives, and pedagogy. We examine a program under which school committees at randomly selected Kenyan schools were funded to hire an additional teacher on an annual contract renewable conditional on performance, outside normal Ministry of Education civil-service channels, at one-quarter normal compensation levels. For students randomly assigned to stay with existing classes, test scores did not increase significantly, despite a reduction in class size from 82 to 44 on average. In contrast, scores increased for students assigned to be taught by locally-hired contract teachers. One reason may be that contract teachers had low absence rates, while centrally-hired civil-service teachers in schools randomly assigned contract teachers endogenously reduced their effort. Civil-service teachers also captured...
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Published Paper
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December 09, 2014
Spanish A4
Siguiendo con nuestra tradición global, en Bolivia hemos realizado investiga- ciones aplicables y rigurosas en áreas de interés nacional, mientras construimos capacidades fundamentales de inves- tigación. Los ejemplos de investigación presentados a continuación ofrecen evidencia prometedora sobre cuestio- nes que afectan a la población pobre en Bolivia.
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Brief
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November 23, 2014
Spanish A4
Siguiendo con nuestra tradición global, en Paraguay hemos realizado investiga- ciones aplicables y rigurosas en áreas de interés nacional, mientras construimos capacidades fundamentales de inves- tigación. Los ejemplos de investigación presentados a continuación ofrecen evidencia prometedora sobre cuestio- nes que afectan a la población pobre en América Latina.
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Brief
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November 23, 2014

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