Directing remittances to education with soft and hard commitments: Evidence from a lab-in-the-field experiment and new product take-up among Filipino migrants in Rome

Original source

Giuseppe De Arcangelis; Majlinda Joxhe; David McKenzie; Erwin Tiongson; Dean Yang

Journal article · Journal of Economic Behavior & Organization · 111, 197–208 · Version date: 7 January 2015

Read the source ↗

Permission for School’s use is unestablished.

Full source notice

Used in these cards

Hard Commitment Direct Payment

"Adding the ability to directly send this funding to the school adds only a further 2.2%."

Incentivized Lab Game Behavioral Forecasting

"We find that choices in these games are significant predictors of take-up of the EduPay product: individuals who allocate more of the 1000 € to this product in the game are more likely to want to use it in practice."

Intra-Household Information Asymmetry

"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."

Last-Mile Implementation Friction in Financial Delivery

"In practice during the pilot phase, many of the schools did not provide the needed information in a timely fashion, so that the majority of these intended transactions were not executed."

Performance Monitoring in Education Remittances

"Direct payment to school + monitoring results in 103.0 € total amount remitted over the mean for choice with no-labels of 614.6 €."

Recipient Time-Inconsistency in Remittance Spending

"Since the returns to schooling occur in the future, while costs occur in the present, impatient or time-inconsistent remittance receivers may be tempted to spend money on items that bring immediate benefits."

"This was to provide the household with a social excuse for using EduPay."

Within-Participant Nested Choice Architecture

"This nested structure allows us to interpret differences in remittances between treatments as reflecting the impact on remittances of adding or subtracting particular sharing options."