Perspectives from Behavioral Economics – Building Better Programs https://www.buildingbetterprograms.org Resources for Improving TANF and Related Work Programs Tue, 19 Jan 2016 14:37:51 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.2 OPRE – Behavioral Interventions to Advance Self-Sufficiency https://www.buildingbetterprograms.org/2016/01/14/opre-behavioral-interventions-to-advance-self-sufficiency/ Thu, 14 Jan 2016 23:10:42 +0000 http://www.buildingbetterprograms.org/?p=1300 Read more]]> This report, from OPRE’s Behavioral Interventions to Advance Self-Sufficiency (BIAS) project, presents findings from a study of two behavioral interventions — one that used behavioral messaging postcards and text message reminders to encourage participation in an optional meeting, and one that made the meeting easier to attend.

The goal of each intervention was to increase participant attendance at an optional informational meeting for Paycheck Plus, an earnings supplement program in which participants had previously enrolled. These meetings gave clients an opportunity to review the program requirements and the incentives for work.

The study found that:

  • Behavioral messaging led to a significant and quite large increase in the percentage of participants who attended the meeting.
  • Sending text messages in addition to postcards was more effective than sending postcards only.
  • Offering the meeting over the phone instead of in person did not have any effect on the participation rate.

These findings demonstrate the promise of using behavioral insights in the design of marketing materials and that using text messages – a low cost communication tool – can be effective at reaching people. Additionally, the surprising finding that reducing the hassle of attending the meeting in person did not increase participation reinforces the importance of testing to see what behavioral insights work in particular contexts.

The Power of Prompts: Using Behavioral Insights to Encourage People to Participate
Research Snapshot
Executive Summary
Full Report

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Poverty Interrupted: Applying Behavioral Science to the Context of Chronic Scarcity, by Ideas42 https://www.buildingbetterprograms.org/2015/06/03/poverty-interrupted-applying-behavioral-science-to-the-context-of-chronic-scarcity-by-ideas42/ Wed, 03 Jun 2015 20:45:45 +0000 http://www.buildingbetterprograms.org/?p=1164 Read more]]> Ideas42, a non-profit organization that uses the insights of behavioral science – which helps us to understand the choices and decisions people make – to design innovative solutions to social problems at scale, recently released a report titled, Poverty Interrupted, that presents behavioral insights that “shed new light on the many challenges facing families with low incomes and those who seek to support them.”  The report puts forth three design principles that flow from these insights:

  • Cut the costs of living in poverty by reducing burdens on time, attention, and cognition;
  • Create slack by helping individuals and families to build an adequate cushion of time, money, attention and other critical resources; and
  • Reframe and empower individuals and families by crafting services to help people do more of what they want to do and less of what they don’t want to do – and to ensure that service providers are capable partners in that task.

Poverty Interrupted: Applying Behavioral Science to the Context of Chronic Scarcity

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Behavioral Economics & Social Policy: Designing Innovative Solutions for Programs supported by ACF https://www.buildingbetterprograms.org/2014/05/13/behavioral-economics-social-policy-designing-innovative-solutions-for-programs-supported-by-acf/ Tue, 13 May 2014 16:36:06 +0000 http://www.buildingbetterprograms.org/?p=641 Read more]]> On April 29, 2014, the Office of Planning, Research & Evaluation (OPRE) at the Administration of Children and Families (ACF at HHS) released a report from the the early stages of their Behavioral Interventions to Advance Self-Sufficiency (BIAS) project.  The evaluation is being conducted by MDRC.

The report provides an introduction to behavioral economics, presents an approach to applying behavioral economics to social programs, known as behavioral diagnosis and design.  The report focuses on three case studies: 1) increasing applications to modify child support orders among incarcerated noncustodial parents in Texas, 2) increasing client engagement with job search in Illinois, and 3) increasing the willingness for suspected victims to wait for a connection to an advocate at the National Domestic Violence Hotline.  For each case study, the report shares key insights.

The report also includes a separate technical supplement with descriptions of 12 commonly applied behavioral interventions identified through a review of the literature.

Go to the report page at OPRE:
Behavioral Economics and Social Policy: Designing Innovation Solutions for Programs Support by the Administration for Children and Families

Quick Links to the Report Sections

 

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Stress impacts good parenting, by Sendhil Mullainathan and Saugato Datta https://www.buildingbetterprograms.org/2014/04/24/stress-impacts-good-parenting-by-sendhil-mullainathan-and-saugato-datta/ Thu, 24 Apr 2014 17:33:25 +0000 http://www.buildingbetterprograms.org/?p=559 Read more]]> In a short article in W.K. Kellogg’s Annual Report from 2011, Sendhil Mullainathan and Saugato Datta discuss how poverty impacts the psychic resources low-income parents have for “good parenting.”  The authors explain, from the behavioral economists’ perspective, how “parenting” programs may not look like parenting programs, but programs that relieve income insecurity.  Includes some policy and program recommendations.

Stress impacts good parenting: The behavioral economists’ perspective, by Sendhil Mullainathan and Saugato Datta (Page 9 in WK Kellogg’s 2011 Annual Report)

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Scarcity: Why Having Too Little Means So Much, by Sendhil Mullainathan and Eldar Shafir https://www.buildingbetterprograms.org/2014/04/24/scarcity-why-having-too-little-means-so-much-by-sendhil-mullainathan-and-eldar-shafir/ Thu, 24 Apr 2014 17:17:06 +0000 http://www.buildingbetterprograms.org/?p=556 Read more]]> Published in 2013, Scarcity: Why Having Too Little Means So Much, is an in-depth look at how scarcity of resources (time, money, etc.) impacts our ability to make decisions in our own best interest.  Taken from a behavioral economics perspective, the book utilizes empirical evidence to broaden our understanding of the scarcity mindset.  Most compelling for our work are the chapters directly addressing poverty.

Harvard University press release for Scarcity: Why Having Too Little Means So Much

 

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How poverty taxes the brain, by Emily Badger https://www.buildingbetterprograms.org/2014/04/24/how-poverty-taxes-the-brain-by-emily-badger/ Thu, 24 Apr 2014 17:13:43 +0000 http://www.buildingbetterprograms.org/?p=553 Read more]]> In this online Atlantic Cities article, Emily Badger discusses Anandi Mani, Sendhil Mullainathan, Eldar Shafir, and Jiaying Zhao’s article “Poverty impedes cognitive function,” published in Science (2013).  Mullainathan et al’s work found that those living in poverty essentially suffer from a “bandwidth tax,” where the poor are mentally taxed by the stresses and circumstances related to poverty.  The work holds critical implications for policy and programs meant to improve low-income populations.

How poverty taxes the brain, by Emily Badger (Atlantic Cities article)

Additional commentary on this research:
Princeton University press release regarding the Science journal article

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