| Título | Are non-fungible payments attractive when they reduce risk exposure? Evidence from Colombia |
|---|---|
| Autores | Cano, Alexander , Cortes, Darwin , MANTILLA RIBERO, CESAR ANDRES, Prada, Laura , Restrepo, Medardo |
| Publicación externa | No |
| Medio | PLoS ONE |
| Alcance | Article |
| Naturaleza | Científica |
| Cuartil JCR | 1 |
| Cuartil SJR | 1 |
| Fecha de publicacion | 02/01/2024 |
| ISI | 001136266700131 |
| DOI | 10.1371/journal.pone.0296299 |
| Abstract | We conducted a lab-in-the-field experiment in which 214 Colombian rural workers must choose between cash or voucher payment for completing a real effort task. Although the voucher may be perceived as non-fungible, it halves the probability of suffering a negative shock that will reduce the participant\'s payment by two-thirds. Participants made four decisions in which we vary the voucher values such that this payment method offers, in expectation, between 88% to 123% of the cash payment (fixed across decisions). We find that uptake rates go from 32% to 56%, from the least to the most generous voucher. These rates are consistently larger compared to a reference sample of undergrad students from the same region (p-values from the chi(2) tests for all four decisions fall below 0.035). Our between-subjects variations reveal that presenting the vouchers in descending order yields a higher uptake than the ascending order (p < 0.001 for the corresponding coefficient in a tobit and ordered logit regressions including municipality characteristics, an effect driven by the two decisions with the lowest voucher values, with p-values of 0.008 and 0.072 in the chi(2) tests, respectively). We interpret this result as an endowment effect of the voucher\'s risk reduction. |
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