Abstract: Programs aimed at fostering development typically target external constraints, such as limited access to education, credit, or social protection. However, engagement with these programs often remains low. Internal psychological constraints may hinder individuals' ability to take advantage of these programs and represent a barrier to investment decisions. This paper examines the impact of a pre-registered randomized testimonial campaign designed to boost self-efficacy---beliefs about one's ability to succeed---among young women in Ghana who registered for a free training program. The campaign significantly raised self-efficacy, but it did not affect overall take-up rate. Instead, it altered the composition of women who began the training. Among those who started, the campaign increased training performance and completion rates. Consistent with a model of behavioral investment traps, effects were concentrated among women with intermediate education levels and initially lower self-efficacy. These results suggest that addressing both internal and external constraints can enhance human capital investments.
Abstract: Information frictions about benefits of migration can lead to inefficient migration choices. We study effects of randomly assigned information treatments concerning regional income differentials in Ghana and Uganda to explore participants’ belief updating and changes in internal migration intentions, destination preferences, and actual migration. Treated participants prefer higher income destinations, while effects on intent plausibly follow subjects’ initial under- or overestimation of potential gains, with asymmetric updating propensities. Effects persist for 18 months, and discussions with others about migrating increase, but actual migration does not. Knowledge about income affects intentions and destination choices, but barriers to actual relocation are complex.
Abstract: We investigate the impact of a large new public hospital on waiting times in emergency departments of other public hospitals in Nicaragua. Using a difference-in-differences design, we find a significant decrease of waiting time by 42% or 10.3 minutes in nearby hospitals compared to hospitals that are further away. The waiting time reduction is largest for nearby hospitals specialized in maternal and paediatric health, as these services overlap the most with those of the new hospital. Findings remain robust when controlling for changes in patient composition, excluding outliers, and using alternative treatment definitions. This study is one of the few impact evaluations of a large infrastructure project in the health sector.
Abstract: We report experimental results from Ghana, where treated subjects received information on regional income differentials. We do not see an effect on migration intentions directly after the intervention, but the effect unfolds over time. Eighteen months later, treated subjects are significantly less likely to express enthusiasm for moving to another region. Individuals who had inaccurately high expectations about regional income differentials are now more likely to want to forgo relocation. Contrary to common claims that the effects of light-touch information experiments dissipate quickly, we suggest that content in high-stakes domains, such as migration, can take time to be incorporated into individuals' decision calculus. We also discuss that delayed effects may be uncommonly observed because long-term follow-ups are rare in the absence of short-term effects.
Abstract: Improved workforce development programs and education in general are of high priority for national governments and development cooperation to tackle the rising youth underemployment in many Sub-Saharan African countries coupled with continued population growth and increasing urbanization rates. Nevertheless, rigorous evidence on their effectiveness remains scarce and finds mixed results. We conducted a randomized controlled trial of a best-case scenario training program in Ghana. The program improved participants’ employment probability and certain aspects of employment quality and livelihoods, but only if the training was provided by high-quality providers. Expectation surveys reveal that stakeholders are overly optimistic about program effectiveness and hardly update their beliefs after revealing the evaluation results.
Abstract: Despite substantial investment in skills training worldwide, evidence for the effectiveness of such interventions in sub-Saharan Africa is still relatively sparse. We contribute to this literature by implementing a multisite randomized controlled trial (RCT) of the Professionalization of Artisans (ProfArts) program in Ghana, a state-of-the art training program designed to improve employment quality through skilled trades training. The research design enables the assessment of impacts on labor market outcomes across multiple sites (four different urban labor markets, six providers). We find limited overall impacts, with variation across cities, including notable employment and income effects in Tamale in the less developed north and some benefits in job quality in the more developed central city of Kumasi. We present evidence that these differences are not well explained by variation in program implementation, hinting at the importance of local labor market conditions. We also document how Bayesian implementers could learn from this evaluation and how real-world stakeholders actually learn. We collect data on implementers’ expectations regarding the program’s effectiveness, both before and after the presentation of RCT results. Stakeholders’ beliefs about the program’s impact adjust in response to empirical findings, but more optimistically than Bayesian learning would suggest.
Abstract: This study investigates the impact of climate change on cognitive load and adaptation to climate change, e.g. investments or migration intentions, among rural populations in Senegal. Drawing on a sample of 4,755 men aged 18-40 across 145 villages, we employ interventions to induce cognitive load through priming on climate and financial uncertainties. Our findings suggest nuanced effects, with climate load heightening climate-related worries and financial load increasing concerns related to finances. However, these effects did not result in a reduction in cognitive resources. Instead, inducing financial load influenced decision-making by increasing external migration intentions and influencing investment preferences, while inducing climate load impacted adaptation decision-making. Our study contributes to understanding the intricate relationship between cognitive load, decision-making under constraints, and the nexus between climate change, adaptation, and migration.