www.cashtransfers.ideas42.orgideas42 Cash Transfers | Explore Our Behavioral

Designs 0Home Evidence Design Learn Contact Open MenuHome Evidence Design Learn Contact Open MenuHome Evidence Design Learn Contact Building more effective powerful efficient impactful cash transfers using behavioral science. Cash transfer programs are a proven anti-poverty tool. But they often fail to support recipients in reaching their long-term financial goals. Designing for human behavior can help. We’ve designed light-touch behavioral interventions for cash transfer programs across sub-Saharan Africa and rigorously tested their impact through randomized controlled trials (RCTs). Emerging evidence is clear: behavioral science provides a cost-effective way for cash transfer recipients to reach their financial goals. Explore our findings Kenya Kenya’s National Safety Net Program Goal: Recipients of Kenya’s National Safety Net Program reported having financial goals, such as starting a new business or purchasing livestock, but found it difficult to reach them. We worked with the World Bank and the Government of Kenya’s Directorate of Social Assistance to help recipients reach their goals. Key Result: Behavioral designs substantially increased the probability that participants set a financial goal and took steps to achieve it. Key Findings Recipients of the behavioral interventions: Were 9% more likely to have set a productive goal.** Saved 41% more of their cash transfer.* * p0.1, ** p0.05 Designs Tested Posters that normalize saving Goal-setting and planning activities Money-partitioning pouches Text message reminders Test Details Individually randomized controlled trial with 900 recipients across 6 villages conducted over one month. Cost-Effectiveness Behavioral interventions were: $6.09 per person 1.5 times as effective at increasing savings then giving recipients the additional cash equivalent to the cost of the interventions. Learn More: Project Brief | Project Report | Blog Cost per person includes the estimated cost of delivering the intervention activities at scale, including any necessary materials, training, and associated program delivery costs. Learn how we calculated cost-effectiveness here. Tanzania Tanzania’s Productive Safety Net Program Goal: Recipients of Tanzania’s Productive Safety Net Program expressed a desire to invest their cash transfer into income-generating activities. However, the cost of their immediate needs made it difficult to do so. We worked with the World Bank and the Government of Tanzania to design and implement behaviorally informed interventions to make saving and investing easier. Key Result: Behavioral designs substantially increased the probability that participants set a financial goal and took steps to achieve it. Key Findings Recipients of the behavioral interventions: Were 65% more likely to have saved.* Were 22% more likely to have made a productive investment. ** * p0.1, ** p0.05 Designs Tested Self-affirmation activities Posters that normalize saving and investing Goal-setting and plan-making activities Money-partitioning pouches Test Details Cluster randomized controlled trial in 64 villages across Tanzania with over 2,600 recipients, conducted over six months. Cost-Effectiveness Behavioral interventions were: $4.89 per person 1.5 times more effective at increasing savings than simply giving the equivalent cash amount used to implement them. Learn More: Project Brief Cost per person includes the estimated cost of delivering the intervention activities at scale, including any necessary materials, training, and associated program delivery costs. Learn how we calculated cost-effectiveness here. Democratic Republic of the Congo Democratic Republic of the Congo’s Eastern Recovery Project Goal : Recipients of a cash transfer program for urban residents experiencing poverty in Kinshasa reported having trouble following through on their productive goals and priorities. We worked with the World Bank and the government of the Democratic Republic of the Congo to design and test behaviorally informed text messages to encourage recipients to follow through on spending their cash transfers in line with their priorities. Key Result: Text message reminders significantly increased the probability that recipients defined a spending priority and spent in line with that priority. Key Findings Recipients of the behavioral text messages: Were 3% more likely to define a spending priority.* Were 4% more likely to spend in line with their priority.** * p0.1, ** p0.05 Designs Tested Two text messages sent to participants: The first was sent before distributing cash, prompting participants to think of their priority and write down a budget. The second was sent just after distributing cash, reminding participants to spend accordingly. Test Details Individually randomized controlled trial with 30,000 cash transfer recipients conducted over a one-month period. Cost-Effectiveness Behavioral interventions were: $0.22 per person 8.25 times more effective at increasing the amount spent toward participants’ priorities than giving the equivalent cash amount used to implement them. Learn More: Project Brief Cost per person includes the estimated cost of delivering the intervention activities at scale, including any necessary materials, training, and associated program delivery costs. Learn how we calculated cost-effectiveness here. South Sudan The South Sudan Social Safety Net Project Goal : Recipients of the South Sudan Social Safety Net Project reported struggling to meet both their basic and longer-term needs in the face of conflict, food insecurity, natural disasters, the COVID-19 pandemic, and the depreciation of the South Sudanese pound. We worked with the World Bank, Government of South Sudan, and the United Nations Office of Project Services to design and test behavioral interventions to help recipients identify and reach their financial goals. Key Result: Behavioral designs significantly increased the proportion of the transfer that recipients spent on their self-identified priority. Key Findings Recipients of the behavioral interventions: Were 4% more likely to have set a priority for their spending.** Spent 7% more of their transfer on their identified priority.* * p0.1, ** p0.05 Designs Tested Goal-setting activity Goal-prioritization activity Budgeting envelopes Posters that combat false narratives about poverty Test Details Individually randomized controlled trial with 900 participants across 17 villages conducted over a one-month period. Cost-Effectiveness Behavioral interventions were: $2.50 per person 1.2 times more effective at increasing the amount spent toward participants’ priorities than giving the equivalent cash amount used to implement them. Learn More: Project Brief Cost per person includes the estimated cost of delivering the intervention activities at scale, including any necessary materials, training, and associated program delivery costs. Learn how we calculated cost-effectiveness here. Madagascar Madagascar’s Human Development Cash Transfer Program Goal : Recipients of the Human Development Cash Transfer program reported wanting to use their cash transfer to improve their child’s development and help their children escape poverty. We worked with the World Bank and the Government of Madagascar to create behaviorally designed interventions that support early childhood development. Key Result: Behavioral designs increased food security and improved child development outcomes, desirable parenting behaviors, and the daily number of meals prepared in a household. Key Findings Recipients of the cash transfer program who received the planning treatment exercise: Scored 5% higher on a scale measuring positive parenting practices.** Were 32% more likely to prepare diverse meals.** Scored 200% higher on language learning assessments (0.12 standard deviation increase).* * p0.1, ** p0.05 Designs Tested Creation of mother leader groups Plan-making tools Self-affirmation activities Test Details Cluster...