Directing Remittances to Education with Soft and Hard Commitments : Evidence from a Lab-in-the-Field Experiment and New Product Take-up among Filipino Migrants in Rome
This paper tests how migrants' willingness to remit changes when given the ability to direct remittances to educational purposes using different forms of commitment. Variants of a dictator game in a lab-in-the-field experiment with Filipino mi...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/05/19592377/directing-remittances-education-soft-hard-commitments-evidence-lab-in-the-field-experiment-new-product-take-up-among-filipino-migrants-rome http://hdl.handle.net/10986/18790 |
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okr-10986-187902021-04-23T14:03:49Z Directing Remittances to Education with Soft and Hard Commitments : Evidence from a Lab-in-the-Field Experiment and New Product Take-up among Filipino Migrants in Rome De Arcangelis, Giuseppe Joxhe, Majlinda McKenzie, David Tiongson, Erwin Yang, Dean ACCOUNTING AMOUNT OF REMITTANCES ANNUAL REMITTANCES ASYMMETRIC INFORMATION ATM CARD BANK ACCOUNT BANK ACCOUNTS BENEFICIARY CASH TRANSFER COLLEGES DEGREES DEVELOPING COUNTRIES ECONOMICS EDUCATIONAL INSTITUTIONS EDUCATIONAL PERFORMANCE EXCHANGE RATE EXTENSION FINANCIAL FLOWS FINANCIAL INSTRUMENTS GENDER HOME COUNTRIES HOME COUNTRY HOUSEHOLD TRANSFERS HUMAN CAPITAL INCOME INCOMES INCREASE IN REMITTANCES INFORMATION ASYMMETRIES INFORMATION ASYMMETRY INSURANCE INTERNATIONAL BANK INTERNATIONAL MIGRATION INTERNATIONAL ORGANIZATION FOR MIGRATION LABOR MARKET LITERATURE MARKETING MIGRANT REMITTANCES MIGRANT WORKERS MIGRANTS OCCUPATIONS OPEN ACCESS PAPERS POLITICAL ECONOMY PRIVATE EDUCATION PRIVATE SCHOOLS PRIVATE SECTOR REMITTANCE REMITTANCE DATA REMITTANCE PRODUCT REMITTANCE RECEIVER REMITTANCE RECEIVERS REMITTANCE RECIPIENTS REMITTANCES REPAYMENT RETURN RETURNS SAVINGS ACCOUNTS SCHOOLS SEND MONEY SEND REMITTANCES TRANSACTION TUITION TUITION PAYMENTS UNIVERSITIES UNIVERSITY DEGREE USE OF REMITTANCES This paper tests how migrants' willingness to remit changes when given the ability to direct remittances to educational purposes using different forms of commitment. Variants of a dictator game in a lab-in-the-field experiment with Filipino migrants in Rome are used to examine remitting behavior under varying degrees of commitment. These range from the soft commitment of simply labeling remittances as being for education, to the hard commitment of having funds directly paid to a school and the student's educational performance monitored. The analysis finds that the introduction of simple labeling for education raises remittances by more than 15 percent. Adding the ability to directly send this funding to the school adds only a further 2.2 percent. The information asymmetry between migrants and their most closely connected household is randomly varied, but no significant change is found in the remittance response to these forms of commitment as information varies. Behavior in these games is shown to be predictive of take-up of a new financial product called EduPay, designed to allow migrants to pay remittances directly to schools in the Philippines. This take-up seems largely driven by a response to the ability to label remittances for education, rather than to the hard commitment feature of directly paying schools. 2014-06-26T21:01:17Z 2014-06-26T21:01:17Z 2014-05 http://documents.worldbank.org/curated/en/2014/05/19592377/directing-remittances-education-soft-hard-commitments-evidence-lab-in-the-field-experiment-new-product-take-up-among-filipino-migrants-rome http://hdl.handle.net/10986/18790 English en_US Policy Research Working Paper;No. 6896 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Philippines |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AMOUNT OF REMITTANCES ANNUAL REMITTANCES ASYMMETRIC INFORMATION ATM CARD BANK ACCOUNT BANK ACCOUNTS BENEFICIARY CASH TRANSFER COLLEGES DEGREES DEVELOPING COUNTRIES ECONOMICS EDUCATIONAL INSTITUTIONS EDUCATIONAL PERFORMANCE EXCHANGE RATE EXTENSION FINANCIAL FLOWS FINANCIAL INSTRUMENTS GENDER HOME COUNTRIES HOME COUNTRY HOUSEHOLD TRANSFERS HUMAN CAPITAL INCOME INCOMES INCREASE IN REMITTANCES INFORMATION ASYMMETRIES INFORMATION ASYMMETRY INSURANCE INTERNATIONAL BANK INTERNATIONAL MIGRATION INTERNATIONAL ORGANIZATION FOR MIGRATION LABOR MARKET LITERATURE MARKETING MIGRANT REMITTANCES MIGRANT WORKERS MIGRANTS OCCUPATIONS OPEN ACCESS PAPERS POLITICAL ECONOMY PRIVATE EDUCATION PRIVATE SCHOOLS PRIVATE SECTOR REMITTANCE REMITTANCE DATA REMITTANCE PRODUCT REMITTANCE RECEIVER REMITTANCE RECEIVERS REMITTANCE RECIPIENTS REMITTANCES REPAYMENT RETURN RETURNS SAVINGS ACCOUNTS SCHOOLS SEND MONEY SEND REMITTANCES TRANSACTION TUITION TUITION PAYMENTS UNIVERSITIES UNIVERSITY DEGREE USE OF REMITTANCES |
| spellingShingle |
ACCOUNTING AMOUNT OF REMITTANCES ANNUAL REMITTANCES ASYMMETRIC INFORMATION ATM CARD BANK ACCOUNT BANK ACCOUNTS BENEFICIARY CASH TRANSFER COLLEGES DEGREES DEVELOPING COUNTRIES ECONOMICS EDUCATIONAL INSTITUTIONS EDUCATIONAL PERFORMANCE EXCHANGE RATE EXTENSION FINANCIAL FLOWS FINANCIAL INSTRUMENTS GENDER HOME COUNTRIES HOME COUNTRY HOUSEHOLD TRANSFERS HUMAN CAPITAL INCOME INCOMES INCREASE IN REMITTANCES INFORMATION ASYMMETRIES INFORMATION ASYMMETRY INSURANCE INTERNATIONAL BANK INTERNATIONAL MIGRATION INTERNATIONAL ORGANIZATION FOR MIGRATION LABOR MARKET LITERATURE MARKETING MIGRANT REMITTANCES MIGRANT WORKERS MIGRANTS OCCUPATIONS OPEN ACCESS PAPERS POLITICAL ECONOMY PRIVATE EDUCATION PRIVATE SCHOOLS PRIVATE SECTOR REMITTANCE REMITTANCE DATA REMITTANCE PRODUCT REMITTANCE RECEIVER REMITTANCE RECEIVERS REMITTANCE RECIPIENTS REMITTANCES REPAYMENT RETURN RETURNS SAVINGS ACCOUNTS SCHOOLS SEND MONEY SEND REMITTANCES TRANSACTION TUITION TUITION PAYMENTS UNIVERSITIES UNIVERSITY DEGREE USE OF REMITTANCES De Arcangelis, Giuseppe Joxhe, Majlinda McKenzie, David Tiongson, Erwin Yang, Dean Directing Remittances to Education with Soft and Hard Commitments : Evidence from a Lab-in-the-Field Experiment and New Product Take-up among Filipino Migrants in Rome |
| geographic_facet |
East Asia and Pacific Philippines |
| relation |
Policy Research Working Paper;No. 6896 |
| description |
This paper tests how migrants'
willingness to remit changes when given the ability to
direct remittances to educational purposes using different
forms of commitment. Variants of a dictator game in a
lab-in-the-field experiment with Filipino migrants in Rome
are used to examine remitting behavior under varying degrees
of commitment. These range from the soft commitment of
simply labeling remittances as being for education, to the
hard commitment of having funds directly paid to a school
and the student's educational performance monitored.
The analysis finds that the introduction of simple labeling
for education raises remittances by more than 15 percent.
Adding the ability to directly send this funding to the
school adds only a further 2.2 percent. The information
asymmetry between migrants and their most closely connected
household is randomly varied, but no significant change is
found in the remittance response to these forms of
commitment as information varies. Behavior in these games is
shown to be predictive of take-up of a new financial product
called EduPay, designed to allow migrants to pay remittances
directly to schools in the Philippines. This take-up seems
largely driven by a response to the ability to label
remittances for education, rather than to the hard
commitment feature of directly paying schools. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
De Arcangelis, Giuseppe Joxhe, Majlinda McKenzie, David Tiongson, Erwin Yang, Dean |
| author_facet |
De Arcangelis, Giuseppe Joxhe, Majlinda McKenzie, David Tiongson, Erwin Yang, Dean |
| author_sort |
De Arcangelis, Giuseppe |
| title |
Directing Remittances to Education with Soft and Hard Commitments : Evidence from a Lab-in-the-Field Experiment and New Product Take-up among Filipino Migrants in Rome |
| title_short |
Directing Remittances to Education with Soft and Hard Commitments : Evidence from a Lab-in-the-Field Experiment and New Product Take-up among Filipino Migrants in Rome |
| title_full |
Directing Remittances to Education with Soft and Hard Commitments : Evidence from a Lab-in-the-Field Experiment and New Product Take-up among Filipino Migrants in Rome |
| title_fullStr |
Directing Remittances to Education with Soft and Hard Commitments : Evidence from a Lab-in-the-Field Experiment and New Product Take-up among Filipino Migrants in Rome |
| title_full_unstemmed |
Directing Remittances to Education with Soft and Hard Commitments : Evidence from a Lab-in-the-Field Experiment and New Product Take-up among Filipino Migrants in Rome |
| title_sort |
directing remittances to education with soft and hard commitments : evidence from a lab-in-the-field experiment and new product take-up among filipino migrants in rome |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/05/19592377/directing-remittances-education-soft-hard-commitments-evidence-lab-in-the-field-experiment-new-product-take-up-among-filipino-migrants-rome http://hdl.handle.net/10986/18790 |
| _version_ |
1764442688443121664 |