IDEAS home Printed from https://ideas.repec.org/p/ess/wpaper/id11993.html
   My bibliography  Save this paper

Scarcity at the End of the Month: First Results from a Field Experiment in Bangladesh

Author

Listed:
  • Emily Breza

    ()

  • Martin Kanz

    ()

  • Leora Klapper

    ()

Abstract

This paper reports results of a ?eld experiment designed to test how the timing of wage payments a?ects consumption and ?nancial behaviors. Salaried employees in a large manufacturing ?rm were paid a bonus equal to approximately 10-15% of their monthly wage. While the amount of the bonus was held constant across all workers, the experiment randomly varied its timing: in a treatment group, workers received the bonus one week before the regular payday – the time when they are most likely to experience ?nancial constraints. In a control group, workers receive the pre-announced bonus on the ?rm’s regular payday.

Suggested Citation

  • Emily Breza & Martin Kanz & Leora Klapper, 2017. "Scarcity at the End of the Month: First Results from a Field Experiment in Bangladesh," Working Papers id:11993, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:11993
    Note: Institutional Papers
    as

    Download full text from publisher

    File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=A2017871146_20.pdf&fcategory=Articles&AId=11993&fref=repec
    Download Restriction: no

    References listed on IDEAS

    as
    1. Richard H. Thaler & Shlomo Benartzi, 2004. "Save More Tomorrow (TM): Using Behavioral Economics to Increase Employee Saving," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages 164-187, February.
    2. Dean Karlan & Margaret McConnell & Sendhil Mullainathan & Jonathan Zinman, 2016. "Getting to the Top of Mind: How Reminders Increase Saving," Management Science, INFORMS, vol. 62(12), pages 3393-3411, December.
    3. William Jack & Tavneet Suri, 2014. "Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution," American Economic Review, American Economic Association, vol. 104(1), pages 183-223, January.
    4. Pascaline Dupas & Jonathan Robinson, 2013. "Why Don't the Poor Save More? Evidence from Health Savings Experiments," American Economic Review, American Economic Association, vol. 103(4), pages 1138-1171, June.
    5. Nava Ashraf & Dean Karlan & Wesley Yin, 2006. "Tying Odysseus to the Mast: Evidence From a Commitment Savings Product in the Philippines," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 635-672.
    6. Blumenstock, Joshua & Callen, Michael & Ghani, Tarek, 2016. "Mobile-izing Savings with Automatic Contributions: Experimental Evidence on Present Bias and Default Effects in Afghanistan," CEPR Discussion Papers 11400, C.E.P.R. Discussion Papers.
    7. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 443-478.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:11993. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash). General contact details of provider: http://www.esocialsciences.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.