Primary Outcomes (end points)
Through financial education migrant households may be better able to allocate the remittances to productive investments. After all, besides their direct impact on current family incomes, remittances are used to fund future investments. In fact, for many households with limited access to credit, remittances may be their only source of finance. Thus, remittances are channeled into investment goods or for small businesses. Families also use them to pay school fees, thereby investing in human capital. A small component of remittances are also used to purchase land and property, as well as to repair and upgrade homes. We would establish the impact of the program by tracking these outcomes via surveys implemented among migrant families during the course of the research project. Further, through the administrative data provided by ASKI and BPI, we would be able to study the usage of financial products and microloans by both migrants and their households.
If we have enough funds to survey migrants located abroad, we will also measure the effect on migrant savings, remittance amounts and channels, frequency of remittances and communication between the migrant and households.
The study team will administer migrants and origin households a baseline survey. Usage of financial products at ASKI and BPI will be tracked using administrative data. A pre-analysis plan for analyses to be conducted will be lodged with The Abdul Latif Jameel Poverty Action Lab (JPAL) prior to the start of baseline fieldwork to forestall later concerns about selective reporting of results. Endline surveys conducted 12 months later will establish impacts on financial outcomes more broadly (beyond outcomes that can be observed in the administrative data).
Randomization ensures that observations are similar on average across treatment conditions, so simple comparison of means across treatments establishes impacts. The primary interest is in outcomes such as control over remittances, savings, remittance amounts and frequency, educational expenditures, housing investments etc.
Examining the impact of financial education and the provision of financial services on various financial decisions and outcomes suggests running the following regression:
Yi = f + b1R1i + b2C1i + b3R1iC1i + ei
Let Yi be the value of a dependent variable of interest, such as savings, control over remittances, amount and frequency of remittances, educational or housing expenditures of households in the Philippines, etc. R1 is an indicator variable indicating assignment to treatment groups in row 1 of the chart, and C1 is an indicator variable for assignment to treatments in column 1. The constant term f is the value of the dependent variable for households who were assigned to Treatment 0, while ei is a mean-zero error term. The coefficients b1 and b2 provide the impact of the financial education program and financial services access respectively while the coefficient b3 measures of the complementarity of providing both financial education and services to the migrant and their household.