Why Don't the Poor Save More? Evidence from Health Savings Experiments

Pascaline Dupas and Jonathan Robinson

No 17255, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: D14 D91 O16 (search for similar items in EconPapers)
Date: 2011-07
New Economics Papers: this item is included in nep-afr, nep-exp, nep-hea and nep-mfd
Note: CH EH
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)

Published as Pascaline Dupas & Jonathan Robinson, 2013. "Why Don't the Poor Save More? Evidence from Health Savings Experiments," American Economic Review, American Economic Association, vol. 103(4), pages 1138-71, June.

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Journal Article: Why Don't the Poor Save More? Evidence from Health Savings Experiments (2013)
Working Paper: Why Don't the Poor Save More? Evidence from Health Savings Experiments (2012)
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