Social capital and savings behavior of the poor: evidence from the field
Social capital and savings behavior of the poor: evidence from the field
7 July, 2020 •Similar Articles
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Two thousand and fifty six Senegalese clients of a Microfinance Institution (MFI) participated in
the experiment during four months. They were divided in three groups: a control group that did not
receive any messages, and two treatment groups, one in which clients received generic messages
that simply said they should save money, and another group in which clients received messages that
referred to the savings behavior of individuals who live in their neighbourhood. The goal of this
study is to assess whether receiving additional information about other participants from the same
area where the participants live (neighbourhood social capital) affects savings behavior. The results
of this study show no significant impact of generic messages on savings behavior. Social capital
effectively encourages deposits, which also makes withdrawals more salient since the accounts are
fully liquid, but only among female clients. Limited attention, psychological reactance, salience,
and gender issues emerge as possible explanations