- PROJECT TITLE: Increasing the Impact of CCTs through Financial Literacy
- TARGET SEGMENT: Solidaridad CCT beneficiaries
- DELIVERY CHANNEL: Professional and peer trainings
- EVALUATION TEAM: Xavier Giné (World Bank), Dean Karlan (Innovations for Poverty Action), Greg Fischer (Innovations for Poverty Action)
- PARTNERS: The Social Cabinet of the Government of the Dominican Republic (GCPS),World Bank, Innovation for Poverty Action (IPA)
- TIMELINE: May 2012 – December 2012
This research project will evaluate the impact of financial literacy training offered to beneficiaries of the Solidaridad conditional cash transfer (CCT) program in the Dominican Republic, in conjunction with the Social Cabinet of the Government of the Dominican Republic (GCPS).
Solidaridad is piloting a series of projects to increase financial literacy and access to credit and savings to improve the income generating opportunities of current beneficiaries. This financial literacy program targets the heads of households in Solidaridad with a moderate poverty level, of which 40% are employed at least part time and over 85% of which have at least primary school education (SIUBEN 2005).
Using a random controlled trial (RCT), IPA plans to evaluate the impact of a package of financial training services upon beneficiaries’ economic wellbeing. The package includes training in household and business financial management, job skills, and access to financial products. The training program is expected to have short-term effects on beneficiaries’ behavior, and long-term effects on their overall welfare.