More Than Money: Effects of Cash Transfer Narratives on Agency and Self-Investment

Participants were randomly assigned by the survey software within enumerator to receive one of three messages introducing the purpose of the cash transfer. The three messages had a similar structure, but we experimentally varied the described purpose of the cash transfer. Specifically, we changed the stated goals of the organization, rationale for providing money, assumptions about recipients, and expectations and goals for the use of the transfer. In the poverty alleviation message, the payment was described as a means to meet basic needs. The individual empowerment message described the payment as a means toward individual goals and advancement. The community empowerment message described the payment as a means toward goals advancing one’s family and the community for community advancement. Participants listened to the message twice in their preferred language (English or Swahili) with pre-recorded audio clips or as read by the enumerator.

After hearing the message once, senior enumerators were alerted to use a project MPESA account to send USD PPP 10.5 to the participant via the mobile money system M-Pesa. Enumerators were instructed to confirm receipt of the payment on the respondent’s phone, after which enumerators played the message a second time.5 Then, enumerators led the respondent’s through a series of questions on how they view the transfer. In particular they are asked questions on their current needs (in the “poverty alleviation” arm) or goals (in the “individual empowerment” and “community empowerment” arms), the name they would assign to these funds (for example “education fund”), how receipt of these funds would affect their relationship with others, and their perceived goal of the organization.

Poverty alleviation message: The goal of this Poverty Alleviation Organization is to alleviate poverty and reduce financial hardship among the poor. This organization believes that people living in poverty should be given income support to help them meet their basic needs. This organization aims to help promote a decent standard of living among the poor and help them deal with emergencies. Thus, the Poverty Alleviation Organization gives financial assistance to people like you, to help them make ends meet. For example, with the financial assistance, people might be able to struggle less to afford basic needs, like paying off debts, paying rent, and buying clothes and food. Now we are going to send you 400 KSh. Please note that this is a one-time transfer of financial assistance.

Individual empowerment message: The goal of this Individual Empowerment Organization is to promote individuals’ potential to create a better future for themselves. The organization believes that individuals are wise and know best how to help themselves become self-reliant/independent if they have the financial resources to do so. This organization aims to empower individuals to pursue their personal interests and create their own path to independence. Thus, the Individual Empowerment Organization gives financial resources to individuals, like you, to enable them to invest in their personal goals. For example, people might use their unique talents to start a self-run business, invest in job training courses, or create art. Now we are going to send you 400 KSh. Please note that this is a one-time transfer of financial resources.

Community empowerment message: The goal of this Community Empowerment Organization is to enable people to help promote better futures for those they care about and want to support most. The organization believes that people know best how to support each other and grow together if they have financial resources to do so. This organization aims to empower people to improve their own lives and those of the people and communities they care about most. Thus, the Community Empowerment Organization gives financial resources to community members, like you, to enable them to contribute positively to the lives of people important to them. For example, when people can invest in themselves, they are better able to expand employment opportunities for others, provide valuable services to their community, or teach others, including children, useful skills and knowledge. Now Community Empowerment Organization is going to send you 400 KSh. Please note that this is a one-time transfer of financial resources.

2017-07-13

2017-07-22

1. Video selection task
This task asked participants to make a choice about watching 3-4 minute video clips. Enumerators described the following six videos and the participant chose to watch two at the end of the survey. Participant could not select the same clip more than once. Video clips were played after the completion of the sociodemographic questionnaire.
1. A video from the Mark Angel comedy group, featuring Emanuela (leisure)
2. A trailer for the Nigerian movie, featuring Ramsey Noah (leisure)
3. A Noa Ubongo video on math skills for business or CBO management (self-investment)
4. A video of football highlights from around the world (leisure)
5. A Noa Ubongo video on using equity and debt for financing business development (self- investment)
6. A Naswa prank skit (leisure)

This task provided information on participants’ willingness to engage in self-investment (i.e. skills building) activities over leisurely activities. We collected data on the participant’s ordered first and second choices. We classified each clip as either for leisure or for self-investment and observe the number of self-investment videos (0, 1, or 2) the participant chooses to watch.


2. Savings decision task
This task allowed participants to invest a portion (either one-quarter or one-half of their initial endowment) in savings with an interest rate of 50%, to be paid out in two weeks. Enumerators reminded the participant about receiving KES 400 and present the participant with the following two choices.
1. “If you send us 100 right now, after two weeks you will get back 150 KSh.” 2. “If you send us 200 right now, after two weeks you will get back 300 KSh.”
If the participant chose to save, enumerators instruct them to send the appropriate amount of money to a project phone number a project phone number using M-Pesa. We also use M-Pesa to complete transfers scheduled in two weeks. To further reduce uncertainty regarding the delayed payment, we provided a phone number for participants to call to follow up on the transaction.


3. Support for organization and message
Participants were reminded of the organization's goal by listening to the audio message treatment once more. They were then asked to evaluate the message and were asked whether they would want to show their support for the organization by recording the organization’s message themselves.
1. This [ORGANIZATION] is asking recipients whether they want to help promote their goal of [ORGANIZATION] by recording the voices of recipients saying their message. They want to share these recordings with possible future recipients as a show of support from current recipients. If you support their goal, you could stay after the survey ends to record the message you heard earlier. Would you like to end after watching the videos, or to continue and do a recording to show support for this organization?

Sampling
This study was conducted in conjunction with the Busara Center for Behavioral Economics (Busara) in Nairobi with 565 participants residing in Kibera and Kawangware, two of Kenya’s largest informal settlements. Treatment and data collection were con- ducted by Busara Center enumerators with participants from Kibera and Kawangware in lab and field settings, using tablets to display audio and video media and record participant responses. This section outlines the sampling procedure used in the experiment.
At the outset of the survey, eligible and consenting participants were told they would be receiving an unconditional cash transfer of KES 400 (USD PPP 10.5) from an organization unaffiliated with the Busara Center.

Treatment
Participants were randomly assigned by the survey software within enumerator to receive one of three messages introducing the purpose of the cash transfer. The three messages had a similar structure, but we experimentally varied the described purpose of the cash transfer. Specifically, we changed the stated goals of the organization, rationale for providing money, assumptions about recipients, and expectations and goals for the use of the transfer. In the poverty alleviation message, the payment was described as a means to meet basic needs. The individual empowerment message described the payment as a means toward individual goals and advancement. The community empowerment message described the payment as a means toward goals advancing one’s family and the community for community advancement. Participants listened to the message twice in their preferred language (English or Swahili) with pre-recorded audio clips or as read by the enumerator.

Participants were recruited from the Busara participant pool and were asked to participate in the survey in one of the lab settings. There were seven survey locations used throughout the study period. Table 1 summarizes these areas. Participants were recruited to participate in the study if they met the following eligibility criteria:
1. Member of the Busara Center’s participant pool
2. Resident of Kibera or Kawangware
3. Owns a working phone and an M-Pesa account registered under the participant’s name

Experimental procedure
The survey questionnaire was delivered by enumerators to participants in Swahili or English, as preferred by the participant. The following summarizes the schedule of tasks in the questionnaire.
1. Consent agreement
2. Cash transfer and message (randomized)
3. Self-efficacy module
4. Stigma module
5. Affect module
6. Video selection task
7. Savings task
8. Message evaluation
9. Support for organization and message
10. MacArthur Subjective Social Status Ladders
11. Sociodemographic module

By Qualtrics software

Individual

No

1

n/a

565/3 per arm

To achieve power of 80% for an estimated effect size of 0.30 SD, the required sample size is 525 participants, with 175 in each of the treatment arms.

Pre analysis plan: Cash Transfer Narratives

How can governments and nonprofits design aid programs that afford dignity and facilitate beneficial outcomes for recipients? We conceptualize dignity as a state that manifests when the stigma associated with receiving aid is countered and recipients are empowered, both in culturally resonant ways. Yet materials from the largest cash transfer programs in Africa predominantly characterize recipients as needy and vulnerable. Three studies examined the causal effects of alternative aid narratives on cash transfer recipients and donors. In study 1, residents of low-income settlements in Nairobi, Kenya (N = 565) received cash-based aid accompanied by a randomly assigned narrative: the default deficit-focused “Poverty Alleviation” narrative, an “Individual Empowerment” narrative, or a “Community Empowerment” narrative. They then chose whether to spend time building business skills or watching leisure videos. Both empowerment narratives improved self-efficacy and anticipated social mobility, but only the “Community Empowerment” narrative significantly motivated recipients’ choice to build skills and reduced stigma. Given the diverse settings in which aid is delivered, how can organizations quickly identify effective narratives in a context? We asked recipients to predict which narrative would best motivate skill-building in their community. In study 2, this “local forecasting” methodology outperformed participant evaluations and experimental pilots in accurately ranking treatments. Finally, study 3 confirmed that the narrative most effective for recipients did not undermine donors’ willingness to contribute to the program. Together these studies show that responding to recipients’ psychological and sociocultural realities in the design of aid can afford recipients dignity and help realize aid’s potential.

Thomas, C. C., Otis, N. G., Abraham, J. R., Markus, H. R., & Walton, G. M. (2020). Toward a science of delivering aid with dignity: Experimental evidence and local forecasts from Kenya. Proceedings of the National Academy of Sciences, 117(27), 15546-15553.

https://www.pnas.org/content/117/27/15546.short