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Directing remittances to education with soft and hard commitments : evidence from a lab-in-the-field experiment and new product take-up among Filipino migrants in Rome

Author

Listed:
  • De Arcangelis, Giuseppe
  • Joxhe, Majlinda
  • McKenzie, David
  • Tiongson, Erwin
  • Yang, Dean

Abstract

This paper tests how migrants'willingness to remit changes when given the ability to direct remittances to educational purposes using different forms of commitment. Variants of a dictator game in a lab-in-the-field experiment with Filipino migrants in Rome are used to examine remitting behavior under varying degrees of commitment. These range from the soft commitment of simply labeling remittances as being for education, to the hard commitment of having funds directly paid to a school and the student's educational performance monitored. The analysis finds that the introduction of simple labeling for education raises remittances by more than 15 percent. Adding the ability to directly send this funding to the school adds only a further 2.2 percent. The information asymmetry between migrants and their most closely connected household is randomly varied, but no significant change is found in the remittance response to these forms of commitment as information varies. Behavior in these games is shown to be predictive of take-up of a new financial product called EduPay, designed to allow migrants to pay remittances directly to schools in the Philippines. This take-up seems largely driven by a response to the ability to label remittances for education, rather than to the hard commitment feature of directly paying schools.

Suggested Citation

  • De Arcangelis, Giuseppe & Joxhe, Majlinda & McKenzie, David & Tiongson, Erwin & Yang, Dean, 2014. "Directing remittances to education with soft and hard commitments : evidence from a lab-in-the-field experiment and new product take-up among Filipino migrants in Rome," Policy Research Working Paper Series 6896, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6896
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    References listed on IDEAS

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    1. Dean Karlan & Leigh Linden, 2014. "Loose Knots: Strong versus Weak Commitments to Save for Education in Uganda," Working Papers 1037, Economic Growth Center, Yale University.
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    Cited by:

    1. Tanguy Bernard & Fo Kodjo Dzinyefa Aflagah & Angelino Viceisza, 2015. "Communication and coordination: Experimental evidence from farmer groups in Senegal," Working Papers hal-02146177, HAL.
    2. Chabé-Ferret, Bastien & Machado, Joël & Wahba, Jackline, 2018. "Remigration intentions and migrants' behavior," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 56-72.
    3. Matthieu Delpierre & Arnaud Dupuy & Michel Tenikue & Bertrand Verheyden, 2017. "The education motive for migrant remittances - Theory and evidence from India," CREA Discussion Paper Series 17-13, Center for Research in Economic Analysis, University of Luxembourg.
    4. repec:eee:ecmode:v:66:y:2017:i:c:p:42-60 is not listed on IDEAS
    5. repec:cai:edddbu:edd_311_0097 is not listed on IDEAS
    6. Kate Ambler & Diego Aycinena & Dean Yang, 2015. "Channeling Remittances to Education: A Field Experiment among Migrants from El Salvador," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 207-232, April.
    7. Bastien Chabé-Ferret & Joël Machado & Jackline Wahba, 2016. "Return Plans and Migrants' Behavior," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2016016, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    8. Gibson, John & McKenzie, David & Rohorua, Halahingano & Stillman, Steven, 2019. "The long-term impact of international migration on economic decision-making: Evidence from a migration lottery and lab-in-the-field experiments," Journal of Development Economics, Elsevier, vol. 138(C), pages 99-115.
    9. repec:taf:oxdevs:v:45:y:2017:i:1:p:80-95 is not listed on IDEAS
    10. Rosa Weber, 2015. "Does intermarriage change migrants’ preferences for the home country?," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-21, December.
    11. Farai Jena, 2016. "The remittance behaviour of Kenyan sibling migrants," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.

    More about this item

    Keywords

    Remittances; Tertiary Education; Access&Equity in Basic Education; Rural Development Knowledge&Information Systems; Debt Markets;

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • D19 - Microeconomics - - Household Behavior - - - Other
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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