Abstract: Saving for the future tends to be particularly challenging in developing country contexts, where many people lack access to formal saving tools. This paper study’s a simple savings scheme that allows workers to defer receipt of part of their wages for three months at zero interest. The scheme significantly increases savings during the deferral period, leading to higher post disbursement spending on lumpy goods. Two years later, after two additional rounds of the savings scheme, it was found that treated workers have made permanent improvements to their homes. The popularity of the scheme implies a lack of good alternative savings options. The results of a follow-up experiment suggest that demand for the scheme is partly due to its ability to address self-control issues.
Presenters:
- Lasse Brune, Postdoctoral Fellow, Global Poverty Research Lab, Northwestern University
- Eric Chyn, Assistant Professor, Department of Economics, Dartmouth College)
- Jason Kerwin, Assistant Professor, Department of Applied Economics, University of Minnesota; Affiliated Professor, J-PAL
Date & Time:
- 2 February 2022 @ 3:00 pm to 4:00 pm (CAT)
