Brief

Working Under Pressure : Improving Labor Productivity through Financial Innovation

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collection.link.307
https://openknowledge.worldbank.org/handle/10986/25446
collection.name.307
Africa Gender Policy Briefs
dc.contributor.author
Carranza, Eliana
dc.contributor.author
Donald, Aletheia
dc.contributor.author
Grosset, Florian
dc.contributor.author
Kaur, Supreet
dc.date.accessioned
2018-12-19T19:26:28Z
dc.date.available
2018-12-19T19:26:28Z
dc.date.issued
2018-12-17
dc.date.lastModified
2021-05-25T10:54:36Z
dc.description.abstract
In developing countries, financial transfers within social and kin networks are ubiquitous and frequent. Though these transfers have social benefits, pressure to redistribute income can introduce a disincentive to work by reducing the payoff of exerting effort. This comes at a potential cost for the overall efficiency of the economy. The authors developed a financial innovation to study the impact of this redistributive pressure on workers’ labor supply and productivity. This innovation, a direct-deposit commitment savings account, enabled workers to convert productivity increases into private savings which cannot be accessed by others. In the first phase of their project, workers offered the direct-deposit commitment savings account increased their labor productivity and earnings by ten percent, which translates into an eighteen percent increase for workers who opened an account. The effect appears to be driven by workers increasing effort while on the job. Preliminary results show that the visibility of an account to one’s social network and the degree of redistributive pressure a worker faces are strong determinants of account take-up. This suggests that tackling the underlying cause for redistributive norms, the lack of consumption smoothing mechanisms, could improve output and growth in developing countries by addressing the root cause of the high demand for commitment savings products.
en
dc.identifier
http://documents.worldbank.org/curated/en/119451545023411016/Working-Under-Pressure-Improving-Labor-Productivity-through-Financial-Innovation
dc.identifier.uri
http://hdl.handle.net/10986/31029
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Gender Innovation Lab Policy Brief;No. 31
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
LABOR PRODUCTIVITY
dc.subject
SAVINGS ACCOUNTS
dc.subject
GENDER
dc.subject
GENDER INNOVATION LAB
dc.subject
AFRICA GENDER POLICY
dc.subject
FEMALE ENTREPRENEURS
dc.subject
FINANCIAL SERVICES
dc.subject
WOMEN AND AGRICULTURE
dc.title
Working Under Pressure
en
dc.title.subtitle
Improving Labor Productivity through Financial Innovation
en
dc.type
Brief
en
okr.date.disclosure
2018-12-17
okr.doctype
Publications & Research :: Brief
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/119451545023411016/Working-Under-Pressure-Improving-Labor-Productivity-through-Financial-Innovation
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/31029
okr.identifier.externaldocumentum
090224b0867a0b86_1_0
okr.identifier.internaldocumentum
30699334
okr.identifier.report
132959
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/119451545023411016/pdf/132959-BRI-PUBLIC-ProductivityBriefFINAL.pdf
en
okr.region.administrative
Africa
okr.region.geographical
Sub-Saharan Africa
okr.topic
Finance and Financial Sector Development :: Contractual Savings
okr.topic
Finance and Financial Sector Development :: Finance and Development
okr.topic
Finance and Financial Sector Development :: Microfinance
okr.topic
Gender :: Gender and Economics
okr.topic
Gender :: Gender and Poverty
okr.unit
GP - Social Protection & Labor (GSJDR)

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