Publication: Taking Control: How Financial Inclusion Impacts Labor Supply
Date
2023-07-13
ISSN
Published
2023-07-13
Author(s)
Carranza, Eliana
Donald, Aletheia
Grosset, Florian
Kaur, Supreet
Abstract
Social and familial financial
transfers are common in low-income communities and have
positive social effects. To address this challenge, the
authors designed and implemented a financial innovation to
lower redistributive pressure among female cashew-processing
workers: a blocked savings account into which gains in
workers’ earnings get transferred. Take-up of the private
account was substantially higher at 60 percent, compared to
14 percent for the non-private account. Being offered a
private account increased workers’ attendance by 9.7 percent
and earnings by 11.4 percent. The estimates imply that
workers face a 9-23 percent social tax rate, and that the
welfare benefits of informal redistribution may come at the
cost of depressing labor supply and productivity.
Link to Data Set
Citation
“Carranza, Eliana; Donald, Aletheia; Grosset, Florian; Kaur, Supreet. 2023. Taking Control: How Financial Inclusion Impacts Labor Supply. Gender Innovation Lab; June 2023. © Washington, DC: World Bank. http://hdl.handle.net/10986/39996 License: CC BY-NC 3.0 IGO.”