Cost-Effectiveness of Market Incentive Information vs Cash Transfers
RCTReview
Policy interventions aiming to delay marriage and encourage female schooling often rely on costly direct cash transfers to households, which require massive funding compared to information-based market linkage programs [4].
Picture this
Imagine trying to get people to visit a new park by either paying everyone $100 to go, or by putting up clear road signs pointing to a beautiful free park that people didn't know existed; providing clear signs achieves similar visits at a tiny fraction of the cost per person [4]. Linking rural populations to existing high-wage job opportunities changes behavior at a low administrative cost per person compared to direct cash handouts [4].
What to do
Prioritize job market information and recruitment linkage interventions over direct cash transfer schemes when seeking cost-effective delays in marriage and gains in female education.
From the source
> "Each recruiter was paid $15,000 in salary and expenses and provided service to 10 villages, each with approximately 125 girls/women of the relevant ages, for a cost of $12 per individual... provided a larger gain in schooling." [4]
Do Labor Market Opportunities Affect Young Women's Work and Family Decisions? Experimental Evidence from India