Chair of Development Economics / Centre for Modern Indian Studies (CeMIS)
Randomized controlled field experiment in urban slums of Pune, India
The Chair of Development Economics is conducting a new randomized controlled field experiment in urban slums of Pune, India. The experiment evaluates the impact of a portable "soft" commitment device and assesses the savings potential in temptation good (e.g. alcohol, tobacco) expenditures among people who live in or close to poverty. The trial is implemented and managed by Aditi Kuber, Kay Tuschen, Dr. Janina Steinert, Aishwarya Joshi, and Abhijeet Kumar. Currently, the team is in the early phase of the study's baseline data collection. In addition, the study is supported by the SNEH Foundation, a Pune based NGO which has initiated multiple interventions and impacted lives of 10000+ kids and mothers in 15 communities in Pune, working closely with local and state government agencies, hospitals, and corporates.
Latest Thinking (lt.org): What is the Global Economic Burden of Diabetes
How psychosocial interventions can help with money management
Financial literacy is known to be one of the biggest constraints to people in poverty handling their budgets. A new study with the involvement of Janina Steinert and Prof. Sebastian Vollmer reveals that psychosocial factors matter more in this regard than previous research had shown. In an RCT, they tested a combined financial literacy and parenting programme for families in South Africa. Findings indicate that the combination of financial and psychosocial components resulted in higher saving and an improved general economic wellbeing. Participants of the treatment group reported feeling more confident, empowered, and optimistic which may have helped them overcome some behavioural constraints and to save more. The findings of the study may assist in designing future poverty alleviation programmes with integrated psychosocial trainings. We are glad that Janina Steinert will join our research group from October 1st onwards. [Journal of Development Economics Article] [VoxDev Column]