Loose Knots: Strong versus Weak Commitments to Save for Education in Uganda
AbstractCommitment devices offer an opportunity to restrict future choices. However, if severe restrictions deter participation, weaker restrictions may be a more effective means of changing behavior. We test this using a school-based commitment savings device for educational expenses in Uganda. We compare an account fully-committed to educational expenses to an account in which savings are available for cash withdrawal but intended for educational expenses. The weaker commitment generates increased savings in the program accounts and when combined with a parent outreach program, higher expenditures on educational supplies. It also increases scores on an exam covering language and math skills by 0.14 standard deviations. We find no effect for the fully-committed account, and we find no effect for either account on attendance, enrollment, or non-cognitive skills.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7901.
Length: 35 pages
Date of creation: Jan 2014
Date of revision:
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Other versions of this item:
- Dean Karlan & Leigh L. Linden, 2014. "Loose Knots: Strong versus Weak Commitments to Save for Education in Uganda," NBER Working Papers 19863, National Bureau of Economic Research, Inc.
- Dean Karlan & Leigh Linden, 2014. "Loose Knots: Strong versus Weak Commitments to Save for Education in Uganda," Working Papers, Economic Growth Center, Yale University 1037, Economic Growth Center, Yale University.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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