Cheap Promises: Evidence From Loan Repayment Pledges In An Online Experiment

Across domains, people struggle to follow through on their commitments. This can happen for many reasons, including dishonesty, forgetfulness, or insufficient intrinsic motivation. Social scientists have explored the reasons for persistent failures to follow through, suggesting that eliciting explicit promises can be an effective way to motivate action. This paper presents a field experiment that tests the effect of explicit promises, in the form of “honor pledges,” on loan repayment rates. The experiment was conducted with LendUp, an online lender, and targeted 4,883 first-time borrowers with the firm. Individuals were randomized into four groups, with the following experimental treatments: 1) having no honor pledge to complete (control); 2) signing a given honor pledge; 3) re-typing the same honor pledge as in (2) before signing; and 4) coming up with a personal honor pledge to type and sign. I also randomized whether or not borrowers were reminded of the honor pledge they signed prior to the repayment deadline. The results suggest that the honor pledge treatments had minimal impacts on repayment, and that reminders of the pledges were similarly ineffective. This suggests that borrowers who fail to repay loans do so not because of dishonesty or behavioral biases, but because they suffer from true financial hardship and are simply unable to repay

Good For You Or Good For Us? A Field Experiment On Motivating Citizen Behavior Change

In recent years, public sector agencies have increasingly been moving citizen services online to reduce administrative burdens for citizens and costs for governments. However, motivating citizens to make the transition to online services can be difficult. In this paper, I report on a randomized control trial with the Philadelphia Licenses and Inspections Department, testing a letter intervention with 11,579 rental license holders designed to encourage them to register for an account and renew online. Subjects were randomly assigned to either a control group that did not receive a letter or one of three treatment groups: 1) Standard (a simple reminder letter); 2) Personal Benefits (a letter with added language emphasizing the reduced burden for citizens from online renewal); and 3) City Benefits (a letter with added language emphasizing the benefits to the city from online renewal). I find a statistically significant, positive effect of letter receipt on both online registration and renewal; for example, the treatment letters increased the probability of renewing at least one license online from 12.3% in the control to 20.4% for the treatments pooled together. Furthermore, the City Benefits letter was the least effective treatment, though there were only small differences between treatments. Finally, the letters were generally more effective for subjects not residing in Philadelphia, suggesting that “nudge” campaigns to reduce administrative burden may be most effective for those facing the highest burdens from in-person public service delivery

Does Administrative Burden Deter Young People? Evidence From Summer Jobs Programs

Administrative burden reduces the effectiveness of public social programs by deterring take up among adults, but we know little about the role these burdens play in public programs for young people. This paper uses empirical evidence to assess how different barriers shape adolescents’ take-up of summer jobs programs. In a Philadelphia experiment, we find that reminder emails increased application completion by 1.8 percentage points (12.3 percent), with bigger effects from emphasizing short-term monetary gains. In a non-experimental analysis of Philadelphia and Chicago programs, we show that without individualized support during enrollment, disconnected youth are less likely to participate when offered a slot than their more advantaged peers. However, offering universal personalized support during enrollment makes them as or more likely to participate. These findings suggest administrative burden does constrain the benefits of public spending on youth programs and that reducing burden can increase gains from social programs for young people

Partisan Polarization And Resistance To Elite Messages: Results From Survey Experiments On Social Distancing

COVID-19 compelled government officials in the U.S. and elsewhere to institute social distancing policies, shuttering much of the economy. At a time of low trust and high polarization, Americans may only support such disruptive policies when recommended by same-party politicians. A related concern is that some may resist advice from “elite” sources such as government officials or public health experts. We test these possibilities using novel data from two online surveys with embedded experiments conducted with approximately 2,000 Pennsylvania residents each, in spring 2020 (Study 1 in April and Study 2 in May-June). We uncover partisan differences in views on several coronavirus-related policies, which grew larger between surveys. Yet overall, Study 1 respondents report strong support for social distancing policies and high trust in medical experts. Moreover, an experiment in Study 1 finds no evidence of reduced support for social distancing policies when advocated by elites, broadly defined. A second experiment in Study 2 finds no backlash for a policy described as being backed by public health experts, but a cross-party decline in support for the same policy when backed by government officials. This suggests that, in polarized times, public health experts might be better advocates for collectively beneficial public policies during public health crises than government officials

Does Simple Information Provision Lead To More Diverse Classrooms? Evidence From A Field Experiment On Undergraduate Economics

This paper reports the results of a field experiment involving 2,710 students across nine US colleges, in which faculty provided incoming women and URM students with information about economics. We randomly assign students to one of three conditions: a control (no email messaging), a Welcome treatment (two emails encouraging students to consider enrolling in economics courses), and a Welcome+Info treatment (which added information showcasing the diversity of research and researchers within economics). The Welcome+Info treatment increases the likelihood of completing an economics course in the first semester of college by 3.0 percentage points, nearly 20 percent of the base rate

Workfare, Wellbeing And Consumption: Evidence From A Field Experiment With Kenya’s Urban Poor

Restrictions like work requirements and constraints on voucher transfers are often used in social welfare systems, but little empirical evidence exists on their impact on wellbeing. We conducted a 10-day randomized experiment with 432 individuals living below the poverty line in the Kawangware settlement of Nairobi, Kenya, testing two elements of social welfare design: workfare versus welfare and restricted versus unrestricted vouchers. Participants were randomly assigned to a “Work” condition, involving daily work for unrestricted vouchers, or one of two “Wait” conditions, involving daily waiting for vouchers that were either unrestricted or partially restricted to staple foods. We find that working improved psychological wellbeing relative to waiting, suggesting that the means of implementing welfare programs may have important effects on individuals beyond the impact of monetary benefit alone. Furthermore, although the restrictions were inframarginal, partially restricted vouchers crowded-in spending on staple foods, suggesting the existence of a “flypaper effect” in spending from restricted vouchers

Bringing “Behavioral” Fully Into Behavioral Public Administration

Behavioral economics is an increasingly influential field across the social sciences, including public administration. But while some behavioral economics ideas have spread rapidly in public administration research, we argue that a broader range of behavioral economics concepts can and should be applied. We begin by outlining some central models and concepts from behavioral economics to fix ideas, including the rational model and the “behavioral” response. We then discuss how a variety of heretofore underutilized behavioral economics concepts can be applied to a specific area of work in public administration – bureaucratic decision making. Our aim in doing so is two-fold. First, we hope to provide fresh food for thought for researchers and practitioners working in the broader behavioral public administration space. Second, we hope to demonstrate that there is substantial scope for expanding behavioral economics’ influence on public administration research

Putting Social Rewards And Identity Salience To The Test: Evidence From A Field Experiment On Teachers In Philadelphia

We partnered with the School District of Philadelphia (SDP) to run a randomized experiment testing interventions to increase teacher participation in an annual feedback survey, an uncompensated task that requires a teacher’s time but helps the educational system overall. Our experiment varied the nature of the incentive scheme used, and the associated messaging. In the experiment, all 8,062 active teachers in the SDP were randomly assigned to receive one of four emails using a 2x2 experimental design; specifically, teachers received a lottery-based financial incentive to complete the survey that was either personal (a chance to win one of fifteen $100 gift cards for themselves) or social (a chance to win one of fifteen$100 gift cards for supplies for their students), and also received email messaging that either did or did not make salient their identity as an educator. Despite abundant statistical power, we find no discernible differences across our conditions on survey completion rates. One implication of these null results is that from a public administration perspective, social rewards may be preferable since funds used for this purpose by school districts go directly to students (through increased expenditure on student supplies), and do not seem less efficacious than personal financial incentives for teachers

Emotions And Decisions In The Real World: What Can We Learn From Quasi-Field Experiments?

Researchers in the social sciences have increasingly studied how emotions influence decision-making. We argue that research on emotions arising naturally in real-world environments is critical for the generalizability of insights in this domain, and therefore to the development of this field. Given this, we argue for the increased use of the “quasi-field experiment” methodology, in which participants make decisions or complete tasks after as-if-random real-world events determine their emotional state. We begin by providing the first critical review of this emerging literature, which shows that real-world events provide emotional shocks that are at least as strong as what can ethically be induced under laboratory conditions. However, we also find that most previous quasi-field experiment studies use statistical techniques that may result in biased estimates. We propose a more statistically-robust approach, and illustrate it using an experiment on negative emotion and risk-taking, in which sports fans completed risk-elicitation tasks immediately after watching a series of NFL games. Overall, we argue that when appropriate statistical methods are used, the quasi-field experiment methodology represents a powerful approach for studying the impact of emotion on decision-making

Diagnosing The Learning Environment For Diverse Students In Introductory Economics: An Analysis Of Relevance, Belonging, And Growth Mindsets

Using administrative and survey data, we diagnose the learning environment in an introductory economics course. Relative to men from overrepresented groups, women and underrepresented minority students finish the course reporting significantly lower measures of relevance, belonging, and growth mindsets, factors related to college success. For example, they are less likely to agree that their professor used relatable examples, more likely to report feeling different than the typical economics major, and less likely to report believing they could learn the material. We also describe a new, low-cost initiative expanding the role of undergraduate teaching assistants to promote a more inclusive environment