81523 enGender Impact: The World Bank’s Gender Impact Evaluation Database Who You Train Matters Identifying Complementary Effects of Financial Education on Migrant Households Author(s) Yoko Doi, David McKenzie, Bilal Zia Contact dmckenzie@worldbank.org Country Indonesia Organizing Theme Economic Opportunities and Access to Assets, Education and Skills Status Completed Intervention Category Training Sector Migration and Remittances There has long been a concern among policymakers that too much of remittances are consumed and too little saved, limiting the development impact of migration. Financial literacy programs have become an increasingly popular way to try and address this issue, but to date there is no evidence that they are effective in inducing savings among remittance-receiving households, nor is it clear whether such programs are best targeted at the migrant, the remittance receiver, or both. The authors conducted a randomized experiment in Indonesia which allocated migrants and their families to a control group, a migrant-only training group, a family member-only training group, and a training group in Abstract which both the migrant and a family member were trained. Three rounds of follow-up surveys are then used to measure impacts on the financial knowledge, behaviors, and remittance and savings outcomes of the remaining household. They find that training both the migrant and the family member together has large and significant impacts on knowledge, behaviors, and savings. Training the family member alone has some positive, but smaller effects, whilst training only the migrant leads to no impacts on the remaining family members. The results show that financial education can have large effects when provided at a teachable moment, but that this impact varies greatly with who receives training Gender Connection Gender Focused Intervention Gender Outcomes Female vocational knowledge or skills, access to credit IE Design Randomized Control Trial The intervention consisted of financial literacy training. The migrant financial literacy training included 2 days of training for 9 hours a day. The family member training was one Intervention day and 8 hours. There were six core modules on : financial management, banking services, savings, debt management, remittances, and insurance. The training was participatory and interactive with groups, games and assignments. Intervention Period 18 hours for migrants, 8 hours for family members The sample comes from 11 job placement companies. 400 households were identified, Sample population almost all of whom were female with the median age of 29. 26% achieved primary school, 45% secondary school, and 28% senior high. The main occupation for migrant work is as Last updated: 14 August 2013 1 enGender Impact: The World Bank’s Gender Impact Evaluation Database a housemaid, which accounts for 80% of the migrant work. There were three treatment arms and one control group. The treatment arms included: Comparison conditions financial training to migrant only financial literacy training to migrant worker's household only, financial training to both migrant and household member. Unit of analysis The remaining household members Evaluation Period February 2010 -March 2011 Training the migrant worker and their family member results in increased financial awareness and applied financial knowledge for the remaining household members. While the training does not change the frequency or quantity of the remittances, training increases Results the chance that households keep financial records, accumulate more savings and rely less on loans. Households in which both the migrant and their family member were trained are 19 p.p. more likely to be aware of financial terms and 12.5 p.p. more likely to have saved in a bank account. Training only the remaining family has a much smaller impact. The results of the training or only measured for remaining household members, not the Primary study limitations migrant him/herself Gender Action Plan, Trust Fund for Investment Climate and Multi-Donor Facility for Funding Source Trade and Investment Climate. McKenzie, D., & Zia, B. (2012). Who you train matters: identifying complementary effects Reference(s) of financial education on migrant households. World Bank Policy Research Working Paper, (6157). Link to Studies https://openknowledge.worldbank.org/handle/10986/12009 Microdata Last updated: 14 August 2013 2