This presentation is part of the programme of the International Seminar "Social Protection, Entrepreneurship and Labour Market Activation: Evidence for Better Policies", organized by the International Policy Centre for Inclusive Growth (IPC-IG/UNDP) together with Canada’s International Development Research Centre (IDRC) and the Colombian Think Tank Fedesarrollo held on September 10-11 at the Ipea Auditorium in Brasilia.

1. Impact evaluation of Oportunidades and
Financial Inclusion
Carlos Chiapa, Silvia Prina
Comments by Martín Valdivia

2. • Under-saving may have several explanations
– Geographic distance of financial institutions
– Inadequacy of savings products
– Financial illiteracy
– Commitment issues (hyperbolic preferences, mental accounting)
• Usual commitment devices include:
– Labeling
– timely reminders
– monetary and non-monetary incentives for periodic deposits,
penalties for early retirements
– Choosing default mechanisms to save: reduce number and timing of
decisions

3. Commitment devices
• The flexibility-rigidity dilemma
– Too flexible to help sustain commitments (self-control, bargaining
power) vs
– Too rigid that reduces take up
– It occurs with penalties for early retirements if it affects their
capacity to deal with shocks
• Products considered in the study are perfectly liquid (no
incentives/penalties)
• No specific time or monetary goal attached to the goal (treatment w/
default does have a 10% automatic deposit to emergency account)
• Labeling: emergencies
– Health emergencies is indeed a good motivation
– Some studies are allowing some endogeneity of the labeling
(educational goals, housing improvements)
• Obviously, we cannot test everything with one study
– Question is: is this labeling and management of incentives the right
mix as context?