Name File Type Size Last Modified
  Replication_Archive 06/15/2021 03:55:PM

Project Citation: 

Brune, Lasse, Chyn, Eric, and Kerwin, Jason. Data and code for: Pay Me Later: Savings Constraints and the Demand for Deferred Payments. Nashville, TN: American Economic Association [publisher], 2021. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-06-23.

Project Description

Summary:  View help for Summary We study a simple savings scheme that allows workers to defer receipt of part of their wages for three months at zero interest. The scheme significantly increases savings during the deferral period, leading to higher post-disbursement spending on lumpy goods. Two years later, after two additional rounds of the savings scheme, we find that treated workers have made permanent improvements to their homes. The popularity of the scheme implies a lack of good alternative savings options. The results of a follow-up experiment suggest that demand for the scheme is partly due to its ability to address self-control issues.

Funding Sources:  View help for Funding Sources Innovations for Poverty Action Financial Inclusion Program (FSI001); USDA National Institute of Food and Agriculture (Hatch project MIN14-164)

Scope of Project

Subject Terms:  View help for Subject Terms savings constraints; income timing; commitment savings; direct deposit; labor supply
JEL Classification:  View help for JEL Classification
      D14 Household Saving; Personal Finance
      J22 Time Allocation and Labor Supply
      J33 Compensation Packages; Payment Methods
      O12 Microeconomic Analyses of Economic Development
      O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
Geographic Coverage:  View help for Geographic Coverage Malawi
Time Period(s):  View help for Time Period(s) 10/2016 – 4/2019
Collection Date(s):  View help for Collection Date(s) 10/2016 – 4/2019
Universe:  View help for Universe Full-time permanent employees at the Lujeri Tea Estates during the 2016-2017 main harvest season.
Data Type(s):  View help for Data Type(s) administrative records data; survey data


Response Rate:  View help for Response Rate
Initial sample N = 870
Follow-up survey 1 (FS1) N = 841 (96.7% response rate)
Follow-up survey 2 (FS2) N = 810 (93.1% response rate)
Follow-up survey 3 (FS3) N = 788 (90.6% response rate)
Follow-up survey 4 (FS4) N = 723 (83.1% response rate)
Follow-up survey 5 (FS5) N = 662 (76.1% response rate)

Sampling:  View help for Sampling Our starting sample was all permanent full-time employees of the Lujeri tea estate (1,897 workers). We collected baseline data and social network data on the 1,240 workers who expressed initial interest in the scheme, then they made an incentivized participation decision at the end of the social network survey. Our final sample is the 870 workers who were still interested in the scheme at the end of the social network survey.
Data Source:  View help for Data Source Surveys of workers at the Lujeri tea estate, along with administrative records on their work performance and savings scheme participation.
Collection Mode(s):  View help for Collection Mode(s) computer-assisted personal interview (CAPI); face-to-face interview
Unit(s) of Observation:  View help for Unit(s) of Observation Workers

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