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Loose Knots: Strong versus Weak Commitments to Save for Education in Uganda

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  • Dean Karlan
  • Leigh L. Linden

Abstract

Commitment devices offer an opportunity to restrict future choices. However, strict commitments may deter participation. Using a school-based commitment savings program for children to save for educational expenses in Uganda, we compare an account fully committed to school expenses to an account with a weaker commitment (funds withdrawn in cash, rather than a voucher). Children save more in the weaker commitment treatment arm, and when combined with parental outreach spend more on educational supplies and score 0.10 standard deviations (standard error =0.04) on test scores. The fully committed account yields no such educational improvements, and neither account finds impacts on secondary or downstream outcomes such as attendance, enrollment, or non-cognitive skills.

Suggested Citation

  • 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.
    • Handle: RePEc:nbr:nberwo:19863
    Note: DEV LE LS
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    References listed on IDEAS

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    1. repec:hal:pseose:halshs-00942662 is not listed on IDEAS
    2. Francesco Avvisati & Marc Gurgand & Nina Guyon & Eric Maurin, 2014. "Getting Parents Involved: A Field Experiment in Deprived Schools," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 57-83.
    3. Hidalgo, Diana & Onofa, Mercedes & Oosterbeek, Hessel & Ponce, Juan, 2013. "Can provision of free school uniforms harm attendance? Evidence from Ecuador," Journal of Development Economics, Elsevier, vol. 103(C), pages 43-51.
    4. Dean Karlan & Aishwarya Lakshmi Ratan & Jonathan Zinman, 2014. "Savings by and for the Poor: A Research Review and Agenda," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 36-78, March.
    5. 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.
    6. Felipe Barrera-Osorio & Marianne Bertrand & Leigh L. Linden & Francisco Perez-Calle, 2011. "Improving the Design of Conditional Transfer Programs: Evidence from a Randomized Education Experiment in Colombia," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 167-195, April.
    7. 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, President and Fellows of Harvard College, vol. 121(2), pages 635-672.
    8. Carla Bertoncino & Paud Murphy & Lianqin Wang, 2002. "Achieving Universal Primary Education in Uganda : The ‘Big Bang’ Approach," World Bank Publications - Reports 10412, The World Bank Group.
    9. Dean Karlan, Aishwarya Lakshmi Ratan, Jonathan Zinman, 2013. "Savings by and for the Poor: A Research Review and Agenda-Working Paper 346," Working Papers 346, Center for Global Development.
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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