Changing Households' Investments And Aspirations Through Social Interactions : Evidence From A Randomized Transfer Program

Abstract

No AccessPolicy Research Working Papers22 Jun 2013Changing Households' Investments And Aspirations Through Social Interactions : Evidence From A Randomized Transfer ProgramAuthors/Editors: Karen Macours, Renos VakisKaren Macours, Renos Vakishttps://doi.org/10.1596/1813-9450-5137SectionsAboutPDF (2.8 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:Low aspirations can limit households' investments and contribute to sustained poverty. Vice versa, increased aspirations can lead to investment and upward mobility. Yet how aspirations are formed is not always well understood. This paper analyzes the role of social interactions in determining aspirations in the context of a program aimed at increasing households' investments. The causal effect of social interactions is identified through the randomized assignment of leaders and other beneficiaries to three different interventions within each treatment community. Social interactions are found to affect households' attitudes toward the future and to amplify program impacts on investments in human capital and productive activities. The empirical evidence indicates that communication with motivated and successful nearby leaders can lead to higher aspirations and corresponding investment behavior. Previous bookNext book FiguresReferencesRecommendedDetailsCited By'We would like this place to be a town': The benefits and challenges of rural development near protected areasWorld Development Perspectives, Vol.24Empowering women in conservative settings: evidence from an intervention in rural EgyptReview of Economics of the Household, Vol.2726 August 2021Basic Income Pilots: Uses, Limitations and Design PrinciplesBasic Income Studies, Vol.16, No.125 June 2021The Competitive Disadvantaged: How Competitions Can Contribute to Poverty Elimination in Paraguay8 May 2021Poverty, depression, and anxiety: Causal evidence and mechanismsScience, Vol.370, No.6522Schooling and Labor Market Impacts of Bolivia's Bono Juancito Pinto ProgramPopulation and Development Review, Vol.45, No.S126 July 2019Mothers' gendered aspirations for their children: a case study of Forbesganj, BiharCompare: A Journal of Comparative and International Education, Vol.49, No.38 January 2018Households' aspirations for rural development through agricultureOutlook on Agriculture, Vol.47, No.211 April 2018Perceived Relative Deprivation and Risk: An Aspiration-Based Model of Human Trafficking VulnerabilityPolitical Behavior, Vol.40, No.122 April 2017Psychosocial wellbeing and place characteristics in MexicoHealth & Place, Vol.50Changes in Subjective Well-Being, Aspirations and Expectations in Participants of Poverty Alleviation Programs: A Qualitative Analysis of Produciendo Por Mi Futuro in ColombiaSSRN Electronic JournalOf Bulls and Bulbs: Aspirations and Perceptions of Rural Youth in ZambiaSSRN Electronic JournalCambios En Bienestar Subjetivo, Aspiraciones Y Expectativas En Participantes De Programas De Alivio a La Pobreza: Un Annlisis Cualitativo De Produciendo Por Mi Futuro En Colombia (Changes in Subjective Wellbeing, Aspirations and Expectations in Participants of Poverty-Alleviation Programs: A Qualitative Analysis of Produciendo Por Mi Futuro in Colombia)SSRN Electronic JournalCOLLECTIVE ACTION AND ASPIRATIONS: THE IMPACT OF COOPERATIVES ON ETHIOPIAN COFFEE FARMERS' ASPIRATIONSAnnals of Public and Cooperative Economics, Vol.87, No.218 December 2015Introduction14 October 2016Social Interactions and Aspirations Formation in Rural EthiopiaSSRN Electronic JournalOptimal Design of Experiments in the Presence of InterferenceSSRN Electronic JournalMigration and educational aspirations – Another channel of brain gain?IZA Journal of Migration, Vol.4, No.126 June 2015Designing Experiments to Measure Spillover Effects, Second VersionSSRN Electronic JournalMigration Experience, Aspirations and the Brain Drain Theory and Empirical EvidenceSSRN Electronic JournalDesigning Experiments to Measure Spillover EffectsSSRN Electronic JournalCultures of Aspiration and Poverty? Aspirational Inequalities in Northeast and Southern ThailandSocial Indicators Research, Vol.114, No.331 October 2012Volatility, agricultural risk, and household poverty: micro-evidence from randomized control trialsAgricultural Economics, Vol.44, No.s11 July 2013Responding to the Psychological Context of Extreme Poverty: Using Cash Transfers to Stimulate Productive Investment Decisions in BangladeshSocial Indicators Research, Vol.113, No.212 March 2013Towards a Quantifiable Measure of ResilienceIDS Working Papers, Vol.2013, No.43425 September 2014The effect of social programs and exposure to professionals on the educational aspirations of the poorEconomics of Education Review, Vol.31, No.5Leadership and Influence: Evidence from an Artefactual Field Experiment on Local Public Good ProvisionSSRN Electronic JournalInterventions in Developing Nations for Improving Primary and Secondary School Enrollment of Children: A Systematic ReviewCampbell Systematic Reviews, Vol.8, No.11 November 2012Same Bureaucracy, Different Outcomes in Human Capital? How Indigenous and Rural Non-Indigenous Areas in Panama Responded to the CCTSSRN Electronic Journal View Published: November 2009 Copyright & Permissions Related RegionsLatin America & CaribbeanRelated CountriesKenyaNicaraguaRelated TopicsEducationFinance and Financial Sector DevelopmentMacroeconomics and Economic GrowthSocial Protections and Labor KeywordsASSET BASEBENEFICIARIESCAPITAL INVESTMENTCASH TRANSFERCASH TRANSFERSDEVELOPING COUNTRIESFINANCIAL SUPPORTHUMAN CAPITALINTERNATIONAL BANKINVESTMENT BEHAVIORLIQUIDITYLIQUIDITY CONSTRAINTSMARKET ACCESSMICROCREDITMICROFINANCEPRODUCTIVE INVESTMENTPRODUCTIVE INVESTMENTSRISK MANAGEMENTSAFETY NETTRUST FUNDS PDF DownloadLoading ...