Do Incentives Matter for the Diffusion of Financial Knowledge? Experimental Evidence from Uganda. (30th May 2018)

• Record Type: Journal Article
• Authors: Sseruyange, John; Bulte, Erwin
• Is Part Of: Journal of African economies. Volume 27:Number 5(2018)
• Page Start: 612
• Page End: 631
• Publication Date: 2018-05-30
• Subjects: knowledge sharing -- spread of innovations -- incentives for diffusion; Africa -- Economic conditions -- 1960- -- Periodicals; Africa -- Economic policy -- Periodicals; 330.96
• DOI: 10.1093/jae/ejy006
• Languages: English
• ISSNs: 0963-8024

Abstract

Abstract: Many development interventions involve training of beneficiaries, based on the assumption that knowledge and skills will spread 'automatically' among a wider target population. However, diffusion of knowledge or innovations can be slow and incomplete. We use a randomised field experiment in Uganda to assess the impact of providing incentives for knowledge diffusion, and pay trained individuals a fee if they share knowledge obtained during a financial literacy training. Our main results are that incentives increase knowledge sharing, and that it may be cost-effective to provide such incentives. We also document an absence of assortative matching in the social learning process.