Harvard Kennedy School Harvard University

Search this site

logo
Faculty Research Working Paper Series
Michael Callen
Assistant Professor of Public Policy
What Are the Headwaters of Formal Savings? Experimental Evidence from Sri Lanka
Callen, Michael, Suresh De Mel, Craig McIntosh, and Christopher Woodruff. "What Are the Headwaters of Formal Savings? Experimental Evidence from Sri Lanka." HKS Faculty Research Working Paper Series RWP15-011, March 2015.
Abstract
When households increase their deposits in formal bank savings accounts, what is the source of the money? We combine high-frequency surveys with an experiment in which a Sri Lankan bank used mobile Point-of-Service (POS) terminals to collect deposits directly from households each week. In this context, the headwaters of formal savings are to be found in sacrificed leisure time: households work more, and work more on the wage market when savings options improve. These results suggest that the labor allocation channel is an important mechanism linking savings opportunities to income.
Attachment
pdf

 

 


Copyright © 2017 The President and Fellows of Harvard College