Income timing and liquidity constraints: Evidence from a randomized field experiment

• 成果类型: Article
• 署名作者: Brune, Lasse; Kerwin, Jason T.
• 署名单位: Northwestern University; University of Minnesota System; University of Minnesota Twin Cities
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2019.01.001
• 发表日期: 2019
• 页码: 294-308
• 关键词: Savings constraints; credit constraints; Financial inclusion; Income timing

摘要

People in developing countries sometimes desire deferred income streams, which replace more-frequent income flows with a single, later lump sum. We study the effects of short-term wage deferral using a randomized experiment with participants in a temporary cash-for-work program. Workers who are assigned to lump-sum payments are five percentage points more likely to purchase a high-return investment. We discuss the role of both barriers to saving and credit constraints in explaining our results. While stated preferences for deferred payments suggest a role for savings constraints, the evidence is also consistent with a simpler model of credit constraints alone.