Teacher experience is a key factor in student learning, but many schools in the United States experience high rates of teacher turnover—especially schools serving low-income communities. One reason that retention may be low in these schools is that student loan debt is a significant burden for teachers. As a result, federal loan forgiveness programs may be an effective way of retaining teachers, but many teachers do not take advantage of these programs.
In countries like India, female labor force participation is low despite rapid economic growth. In partnership with the government of Madhya Pradesh, researchers offered women individual bank accounts to evaluate the impact of increasing women’s financial control on labor market participation and earnings. Linking earnings from a government workfare program to women’s bank accounts led to increased employment both within the program and in the private sector.
Access to quality jobs is a pressing concern in sub-Saharan Africa. Researchers have partnered with Samasource and Innovations for Poverty Action to conduct a randomized evaluation measuring the impact of a digital vocational training program, with and without an employment program, on formal employment of young Kenyans.
In Mexico, as in many other countries, retirement savings levels are low. The situation is worse for informal workers and the unemployed, who cannot rely on employer contributions to help build their nest eggs.
In Burkina Faso, as in many sub-Saharan countries, farmers struggle with low crop yields. Most established techniques to increase agricultural productivity rely on the use of technologies like fertilizer, but these inputs are expensive and inaccessible to many farmers in the region.
While many low-income Americans have costly debt, they typically spend only a small proportion of their tax rebates to repay those debts. In partnership with Baltimore CASH, researchers are introducing postcards that encourage low-income tax filers to use their tax rebates to pay off debt, and varying the timing of postcard delivery, to evaluate the impact of these nudges on debt repayment.
Throughout Sub-Saharan Africa, early literacy remains very low, and existing interventions have not proven to be cost-effective.1 Children from rural areas are particularly at risk for below-average literacy skills due to a lack of age-appropriate literary resources, low rates of caregiver literacy, and low levels of teacher support.
Pensions are seen as an important tool for reducing poverty among a growing elderly population worldwide. Researchers working with Innovations for Poverty Action and Paraguay’s Ministry of Finance to conduct a randomized evaluation of a national non-contributory pension program for low-income seniors. Researchers will measure the impacts of national pensions on senior citizens’ economic wellbeing and quality of life.
Commitment savings accounts—which reward users for reaching savings goals and penalize them for withdrawing early—have the potential to help people reach their savings goals, but concern over having enough cash on hand to cover emergencies may discourage some from using them. Changing the design of commitment savings accounts to pay incentive bonuses up front rather than at the end of a defined period may encourage more people to take advantage of them.
While evidence suggests that microloans are not effective in reducing poverty, providing microenterprises with larger loans may be more effective in helping them grow, reducing poverty, and increasing business opportunities for microfinance lenders.
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.
Non-communicable diseases (NCDs) like diabetes, hypertension, and cancer have become increasingly prevalent in low- and middle-income countries in recent years, but health systems in most of these countries have been geared towards treatment of acute rather chronic diseases. In Kenya, researchers are evaluating the impact of Novartis Access, an initiative that offers a basket of NCD medicines at a reduced wholesale price, on the availability and purchase price of medicines.
In Colombia, as in many other countries, workers face many barriers to saving for retirement. The situation is much worse for informal workers, who make up about 65 percent of the total workforce in Colombia.
Most public-sector workers and many private sector employees in developing countries are paid monthly, a schedule that means large lump-sum payments follow periods of relative scarcity. Employees who receive wages following a cash-strapped period may be more likely to buy temptation goods––spending large sums of money in ways they later regret.
Micro-loans are a promising means of promoting entrepreneurship, but conventional loan products are often unsuited to the needs of small businesses in developing countries. Offering microenterprise borrowers the ability to postpone loan payments when needed may encourage long-term investments in business expansion and help owners cope with financial hardship.
In parts of southern Africa, environmental pressure on the land from over-grazing has contributed to land and water shortages and made communities more vulnerable to drought. In Namibia, researchers are measuring the impact of a community-based natural resource management program on livestock assets, income, social cohesion and land quality.
As road congestion and urban sprawl worsen in ever-expanding African cities, many governments are investing in public transit infrastructure. But transit systems are often expensive and difficult to construct. Bus rapid transit (BRT)—or dedicated lanes for buses that run along existing roads—are a relatively low-cost public transit option, but there is little rigorous evidence on their efficacy in reducing congestion or improving socio-economic outcomes.
Governments must pay their employees for states to function, but frequent delays and leakage of salary payments can undermine government effectiveness. In partnership with the Ministry of Education of Afghanistan, researchers are conducting a randomized evaluation to study whether mobile salary payments (MSPs) improve learning by increasing teacher attendance and morale.
Although Rwanda has one of the highest rates of primary enrollment in sub-Saharan Africa, concerns around education quality persist. Researchers are exploring one route to recruiting and motivating skilled teachers: pay-for-performance contracts in public schools.
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.