Blattman, Fiala, and Martinez (2018), which examines the nine-year effects of a group-based cash grant program for unemployed youth to start individual enterprises in skilled trades in Northern Uganda, was released today. Those of you well versed in the topic will remember Blattman et al. (2014), which summarized the impacts from the four-year follow-up. That paper found large earnings gains and capital stock increases among those young, unemployed individuals, who formed groups, proposed to form enterprises in skilled trades, and were selected to receive the approximately $400/per person lump-sum grants (in 2008 USD using market exchange rates) on offer from the Northern Uganda Social Action Funds (NUSAF). I figured that a summary of the paper that goes into some minutiae might be helpful for those of you who will not read it carefully – despite your best intentions. I had an early look at the paper because the authors kindly sent it to me for comments.
This is the tenth in our job market paper series this year.
In developing countries, the high costs of credit along with varied impediments to saving, make it challenging for people to raise large sums of liquidity needed for large and indivisible, or “lumpy,” expenditures. An emerging body of evidence has shown how these constraints push people towards second-best strategies to address their financial needs (Collin et al. 2009 and Banerjee and Duflo 2007). My job market paper, “Gambling, Saving, and Lumpy Expenditures: Sports Betting in Uganda”, looks at the behaviors of 1,715 bettors in Kampala, Uganda and provides evidence that unmet liquidity needs push people towards sports betting as an unexpected alternative method of liquidity generation.
This is the ninth in our series of posts by students on the job market this year.
In developing countries a large fraction of public and financial services are provided by NGOs and mediated by community groups. These organizations are typically external rather than native to the communities where they operate and it is believed that increasing local ownership can improve legitimacy and sustainability of development programs. For this reason development organizations are increasingly turning to participatory decision-making practices. A notable example is the World Bank’s focus on ”Community Driven Development”-projects in the last decade (See Mansuri and Rao (2013) for a review). Previous studies that evaluate Community Driven Development projects point to several advantages of direct local participation compared to central decision making by an NGO or by representatives (see e.g. Olken (2010), Beath et al. (2012), Madajewicz et al. (2014)). Yet, so far we know very little about the relative benefits of different types of direct participation. For example: can we expect a secret ballot vote to be comparable to an open discussion in a village meeting?