Also Inside: New Results on Financial Resource Sharing in Côte d’Ivoire
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IPA Random Update
LATEST RESEARCH & NEWS
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ANNOUNCEMENT
IPA Congratulates 2019 Nobel Prize Winners Abhijit Banerjee, Esther Duflo, and Michael Kremer
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"Congrats to the Nobel Prize-winning Team! Along with the large network of researchers they have created, these Nobel laureates have generated evidence that has benefitted millions of people living in poverty. We are so proud to be part of this movement of using a rigorous, evidence-based approach to fight poverty."
— Annie Duflo, IPA’s Executive Director
Read the full announcement here
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Learn about Banerjee and Duflo's new book and an upcoming launch event here
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NEW RESULTS
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Social Norms, Resource Sharing, and Worker Incentives in Côte d’Ivoire
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Researchers: Eliana Carranza, Aletheia Donald, Florian Grosset, Supreet Kaur
In many low-income countries, people face pressure from family and friends to share their earnings. While this dynamic can insure individuals in the face of shocks, it may also restrict labor productivity and economic transformation. In Côte d’Ivoire, researchers tested whether redistributive arrangements, by acting as a tax on earnings, lower people’s incentive to work. Workers were provided a direct-deposit illiquid savings account designed to make it easier to convert productivity increases into private long-term savings. Preliminary results show the intervention increased labor productivity and earnings by 10% (an 18% impact on workers who actually opened the accounts). However, if workers’ family members would learn about the existence of the savings accounts, take-up plummeted from 55% to 9%—consistent with redistributive pressure. The findings suggest that such pressures may contribute to low productivity in developing countries.
Read the full summary here.
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FEATURED STUDY
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Do Prize-Linked Incentives Help Americans Reduce their Debt?
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Researcher: Jeremy Burke
Americans hold approximately 870 billion dollars in outstanding credit card debt. High levels of debt are financially problematic and levels grow as they remain unpaid. Researchers tested a "prize-linked incentive" model for debt reduction in which participants are entered into a lottery to have a portion of their debt paid off. Prize-linked incentive programs have become a popular approach in the U.S. and abroad to improve financial behavior. The study found that the prize-linked incentive was popular: three-quarters of those offered the incentives took them up. Takers were timelier with repayment and paid off more debt. However, the effects were driven by selection: there was no impact on those randomly offered the incentive program. These results suggest that prize-linked incentives may simply attract individuals who are already more likely to repay their debts, and not actually change behavior.
Read the full summary here
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and the working paper here
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Watch the IPA webinar on this study here
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BLOG
IPA Welcomes New Directors Sarah Kabay, Rafe Mazer, and Elliot Collins
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By Jeffrey Mosenkis
IPA IN THE NEWS
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NPR on Nobel Winners' Impact on the Fight Against Poverty
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Abhijit Banerjee and Esther Duflo on a Better Kind of Economics in The Guardian
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IPA Education Research in Latin America Cited in Forbes
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IPA Founder Dean Karlan Interviewed by Nature
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India's Financial Express on Nobel Prize Win and How IPA Bridges Research and Academia
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Peru's Diario Correo Covers Nobel Winners' Research on Ultra-Poor Graduation Model
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IPA Research Receives Widespread Coverage After Nobel Announcement
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EVENTS
UPCOMING
Education Evidence for Action (EE4A) Conference 2019
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November 27-29 | Machakos, Kenya
Book Launch: Good Economics For Hard Times by Abhijit V. Banerjee and Esther Duflo
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November 25 | New York City, United States
2019 Development Research Institute Annual Conference
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November 7 | New York City, United States
IPA to Present at Family Planning Results Dissemination Event
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November 7 | Ouagadougou, Burkina Faso
RECENT
IPA and MSEA Co-Host Policy Dialogue on SME Development in Kenya
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October 29 | Nairobi, Kenya
IPA Presents at 2019 African Microfinance Week
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October 21 & 23 | Ouagadougou, Burkina Faso
Webinar: Do Prize-Linked Incentives Promote Positive Financial Behavior?
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October 22 | Webinar, United States
IPA and Government Partners Participate in Panels at What Works Global Summit (WWGS)
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October 14-18 | Mexico City, Mexico
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