This presentation is part of the programme of the International Seminar "Social Protection, Entrepreneurship and Labour Market Activation: Evidence for Better Policies", organized by the International Policy Centre for Inclusive Growth (IPC-IG/UNDP) together with Canada’s International Development Research Centre (IDRC) and the Colombian Think Tank Fedesarrollo held on September 10-11 at the Ipea Auditorium in Brasilia.
Martín valdivia impact evaluation of oportunidades and financial inclusion
1. Impact evaluation of Oportunidades and
Financial Inclusion
Carlos Chiapa, Silvia Prina
Comments by Martín Valdivia
2. • Under-saving may have several explanations
– Geographic distance of financial institutions
– Inadequacy of savings products
– Financial illiteracy
– Commitment issues (hyperbolic preferences, mental accounting)
• Usual commitment devices include:
– Labeling
– timely reminders
– monetary and non-monetary incentives for periodic deposits,
penalties for early retirements
– Choosing default mechanisms to save: reduce number and timing of
decisions
3. Commitment devices
• The flexibility-rigidity dilemma
– Too flexible to help sustain commitments (self-control, bargaining
power) vs
– Too rigid that reduces take up
– It occurs with penalties for early retirements if it affects their
capacity to deal with shocks
• Products considered in the study are perfectly liquid (no
incentives/penalties)
• No specific time or monetary goal attached to the goal (treatment w/
default does have a 10% automatic deposit to emergency account)
• Labeling: emergencies
– Health emergencies is indeed a good motivation
– Some studies are allowing some endogeneity of the labeling
(educational goals, housing improvements)
• Obviously, we cannot test everything with one study
– Question is: is this labeling and management of incentives the right
mix as context?