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Why Don't the Poor Save More? Evidence from Health Savings Experiments / Pascaline Dupas, Jonathan Robinson.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Dupas, Pascaline.
Contributor:
National Bureau of Economic Research.
Robinson, Jonathan.
Series:
Working Paper Series (National Bureau of Economic Research) no. w17255.
NBER working paper series no. w17255
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2011.
Summary:
Using data from a field experiment in Kenya, we document that providing individuals with simple informal savings technologies can substantially increase investment in preventative health and reduce vulnerability to health shocks. Simply providing a safe place to keep money was sufficient to increase health savings, through a mental accounting effect. Adding an earmarking feature was only helpful when funds were put towards emergencies; earmarking for preventative health reduced savings on average, because the liquidity cost of tying up money was too great. Providing social pressure and credit through a ROSCA-based savings scheme had very large effects.
Notes:
Print version record
July 2011.

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