Assessing the Role of Social Networks on Migrant Labor Market Outcomes

Catia Batista

Nova School of Business and Economics, CReAM, IZA, and NOVAFRICA

Ana Isabel Costa

Nova School of Business and Economics and NOVAFRICA


ISSN 2183-0843
Working Paper No 1601
Abril 2016
Revisão Janeiro 2018


Investment in improved agricultural inputs is infrequent for smallholder farmers in Africa. One barrier may be limited access to formal savings. We designed and conducted a field experiment in rural Mozambique that randomized access to a savings account through mobile money to a sample of smallholder farmers. All subjects were given access to mobile money and information about fertilizer use. We also randomized whether closest farming friends were targeted by the same intervention. We find that the savings account increased savings, the probability of fertilizer use, by 31-36 pp, and the use of other agricultural inputs. We also show that the savings account increased household expenditures, in particular non-frequent ones. Our results suggest that the network intervention decreased social pressure to share resources and that the savings account protected farmers against this network pressure.

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