Motivation
A gaping digital divide exists between men and women in the developing world. In 2015, globally 200 million fewer women than men owned a mobile phone and 250 million fewer women than men were internet-literate. As a result, as financial services have grown increasingly digital, women have been particularly left behind. Social and cultural constraints, such as greater rates of illiteracy and social seclusion, contribute to women’s comparatively low adoption of digital financial services.1 Yet multiple studies demonstrate the positive impacts of financial inclusion on women’s lives.2,3 In this context, the research team has developed an innovative way to circumvent cultural constraints and provide women with access to liquidity and thereby the benefits that financial access provides.
Objective
This study explores the impact of advanced digital pay on women’s economic empowerment. The research team hypothesizes that access to capital when required can enhance women’s ability to address household-level shocks, as well as increase women’s intra-household bargaining power, workplace performance, and sense of well-being. The study will take place in a single garment factory in Bangalore operated by Shahi Industries. A sample of 900 participants will be divided into a treatment and a control group. 450 participants will be randomly assigned to have the option to receive a digital salary advance, coupled with training on use of this platform. The 450 control participants will be paid via standard processes, whereby salaries will be transferred into workers’ bank accounts at the end of the month. In addition to measuring impacts on household-level bargaining power, the study will assess whether the intervention reduces the stress levels of women, improves their work efficiency and confidence levels, and reduces their dependence on informal debt.
