What are the Headwaters of Formal Savings? Experimental Evidence from Sri Lanka
Published By: BREAD on eSS | Published Date: November, 01 , 2014When households increase their deposits in formal bank savings accounts, what is the source of the
money? High-frequency surveys are combined 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 labour allocation channel is an important mechanism linking savings opportunities to income.
Author(s): Michael Callen, Suresh De Mel, Craig McIntosh, Christopher Woodruff | Posted on: Nov 13, 2014 | Views(616) | Download (871)