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Right-sizing Incentives
Edward N Okeke1, Isa S Abubakar2
1Pardee RAND Graduate School and Department of Economics, Sociology and Statistics, RAND, 1200 South Hayes, Arlington, VA 22202.
This paper presents results from a field experiment in Nigeria in which expectant mothers were offered cash payments of N2500, N4000 or N10000 conditioned on using formal medical care. A secondary intervention provided some mothers with an information signal about their pregnancy risk. We find highly non-linear effects of conditional payments-most of the incentive effect occurs on the extensive margin, with rapidly diminishing returns to incentive size. We also uncover new spillover effects: showing that incentives increase healthcare use in childhood by index children and by other children in the household. We find largely null effects of the information signal.
This paper presents results from a field experiment in Nigeria in which expectant mothers were offered cash payments of N2500, N4000 or N10000 conditioned on using formal medical care. A secondary intervention provided some mothers with an information signal about their pregnancy risk. We find highly non-linear effects of conditional payments-most of the incentive effect occurs on the extensive margin, with rapidly diminishing returns to incentive size. We also uncover new spillover effects: showing that incentives increase healthcare use in childhood by index children and by other children in the household. We find largely null effects of the information signal.
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