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Do Incentives Matter for the Diffusion of Financial Knowledge? Experimental Evidence from Uganda

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  • John Sseruyange
  • Erwin Bulte

Abstract

Many development interventions involve training of beneficiaries, based on the assumption that knowledge and skills will spread ‘automatically’ among a wider target population. However, diffusion of knowledge or innovations can be slow and incomplete. We use a randomised field experiment in Uganda to assess the impact of providing incentives for knowledge diffusion, and pay trained individuals a fee if they share knowledge obtained during a financial literacy training. Our main results are that incentives increase knowledge sharing, and that it may be cost-effective to provide such incentives. We also document an absence of assortative matching in the social learning process.

Suggested Citation

  • John Sseruyange & Erwin Bulte, 2018. "Do Incentives Matter for the Diffusion of Financial Knowledge? Experimental Evidence from Uganda," Journal of African Economies, Centre for the Study of African Economies, vol. 27(5), pages 612-631.
    • Handle: RePEc:oup:jafrec:v:27:y:2018:i:5:p:612-631.
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    File URL: http://hdl.handle.net/10.1093/jae/ejy006
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    Citations

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    Cited by:

    1. Alem, Yonas & Dugoua, Eugenie, 2021. "Learning from unincentivized and incentivized communication: A randomized controlled trial in India," Ruhr Economic Papers 895, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Solomon Balew & Erwin Bulte & Zewdu Abro & Menale Kassie, 2023. "Incentivizing and nudging farmers to spread information: Experimental evidence from Ethiopia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(3), pages 994-1010, May.
    3. Adjognon,Guigonan Serge & Nguyen Huy,Tung & Guthoff,Jonas Christoph & van Soest,Daan, 2022. "Incentivizing Social Learning for the Diffusion of Climate-Smart Agricultural Techniques," Policy Research Working Paper Series 10041, The World Bank.
    4. Alem, Yonas & Hassen, Sied & Köhlin, Gunnar, 2023. "Decision-making within the household: The role of division of labor and differences in preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 511-528.
    5. Alem, Yonas & Dugoua, Eugenie, 2022. "Learning from unincentivized and incentivized communication: a randomized controlled trial in India," LSE Research Online Documents on Economics 110858, London School of Economics and Political Science, LSE Library.
    6. Shikuku, Kelvin Mashisia, 2019. "Information exchange links, knowledge exposure, and adoption of agricultural technologies in northern Uganda," World Development, Elsevier, vol. 115(C), pages 94-106.

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