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

Dean Karlan and Leigh Linden

No 9832, CEPR Discussion Papers from Centre for Economic Policy Research

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in Uganda, we compare an account fully committed to school expenses to an account with a weaker commitment (funds withdrawn in cash, rather than a voucher).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.

Keywords: Commitment savings; Micro-savings; Educational resources; School participation (search for similar items in EconPapers)
JEL-codes: D12 D91 I21 O12 (search for similar items in EconPapers)
Date: 2016-02
New Economics Papers: this item is included in nep-afr, nep-edu and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Related works:
Journal Article: Loose knots: Strong versus weak commitments to save for education in Uganda (2025)
Working Paper: Loose Knots: Strong versus Weak Commitments to Save for Education in Uganda (2014)
Working Paper: Loose Knots: Strong versus Weak Commitments to Save for Education in Uganda (2014)
Working Paper: Loose Knots: Strong versus Weak Commitments to Save for Education in Uganda (2014)
Working Paper: Loose Knots: Strong versus Weak Commitments to Save for Education in Uganda (2014)
Working Paper: Loose Knots: Strong versus Weak Commitments to Save for Education in Uganda (2014)
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