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Alcohol and Self-Control - A Field Experiment in India

Terça, 02 Dezembro 2014 17:42

Frank Schilbach

 

High levels of alcohol consumption are more common among the poor. This could have economic consequences beyond mere income efects because alcohol impairs mental processes and decision making. Since alcohol is thought to induce myopia, this paper tests for impacts on self-control and on savings behavior. In a three-week eld experiment with low-income workers in India, I provided 229 individuals with a high-return savings opportunity and randomized incentives for sobriety among them. The incentives signicantly reduced daytime drinking as measured by decreased breathalyzer scores.

 

acesse: mp_frank_schilbach1.pdf

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