Identifying Combined Effects of Financial Education on Migrant Households in Indonesia 2010-2012, Randomized Experiment
Other Household Survey
Policymakers and much of the migration literature have long worried that the majority of remittances are used for consumption purposes, not savings or investment, reducing their long-term development potential. One of the main policy responses to try and increase savings from remittances and improve financial management among remittance receivers has been the introduction of financial literacy programs for migrants and/or their families.
Researchers from the World Bank conducted a randomized experiment in Indonesia in the context of a pilot program on financial literacy for female overseas migrant workers and their families. The program was developed as a partnership between the Government of Indonesia and the World Bank, and implemented in Greater Malang area and Blitar District of East Java Province. The training program emphasized financial planning and management, savings, debt management, sending and receiving remittances, and understanding migrant insurance. One key policy question is whether such information is best delivered to the migrant worker herself, to someone in their remaining household, or to both. The experiment directly tested these options using three treatment groups: a group in which only the migrant worker receives training, a group in which the main remittance receiver or decision-maker in the remaining household receives training, and a group in which both receive training.
The baseline survey was conducted on a rolling basis from February to June 2010 to coincide with the training cycle. After the training, three rounds of follow-up surveys were administered to family members left behind. The follow-up surveys were conducted from March 2011 to January 2012, at time intervals corresponding to the migrant being 9, 15, and 19 months abroad on average. The follow-up data was then used to measure impacts on the financial knowledge, behaviors, and remittance and savings outcomes of the remaining household.
Researchers collaborated with Malang's Manpower and Transmigration Office and 11 migrant workers' recruiting agencies (PPTKIS) based in Greater Malang to obtain a sample of 400 migrant workers and their families.
Kind of Data
Sample survey data [ssd]
Unit of Analysis
- Migrant workers
- Family members of migrant workers
v01 - Edited datasets for public distribution
The scope of the study includes:
- Demographic characteristics of respondents
- Family income
- Family expenditure
- Use of financial services
- Methods to save money
- Use of banks, banks' saving accounts
- Receiving remittances
- Obtaining and repaying loans
- Understanding financial terms
- Making financial plans
- Owing/starting a business
- Financial literacy
Producers and sponsors
Gender Action Plan
Multi-Donor Facility for Trade and Investment Climate
Trust Fund for Investment Climate
The recruitment of respondents was conducted on a rolling basis, with the project team periodically contacting the 11 PPTKIS (Privately-owned Indonesian Manpower Placement Company) to obtain lists of workers originating in the Greater Malang and Blitar districts who were recruited by these companies to work abroad. The PPTKIS selected workers who were either staying in their dormitory facilities while undergoing training, or otherwise lived close by. These PPTKIs recruit both males and females, but the males typically do not come and stay in dormitory accommodation, so males were only selected if they lived nearby. They did not screen workers for interest in participating in training, so the workers should be considered as broadly representative of Indonesian female migrants. Researchers set a target sample size of 400 households, and continued to collect workers in batches from these recruiting agencies until this target had been met.
As batches of worker names were received from the PPTKIS, they were entered by project staff onto an Excel worksheet in the order listed by the PPTKIS, and a random number generator used to assign individuals to a treatment status. Since batches of workers were often not of size divisible by four, and were of varying numbers, and that the only information available on the workers was basic data supplied by the PPTKIS, the research team did not stratify the randomization. The sample of 400 migrant workers was randomly assigned into one of the following groups:
- Treatment A: Financial literacy training is provided to the migrant worker only
- Treatment B: Financial literacy training is provided to the migrant worker's household member only
- Treatment C: Financial literacy training is provided separately to both the migrant workers and to their household members
- Group D: Control group with no financial literacy training provided
Out of the sample of 400 migrant workers, this random assignment resulted in 101 migrant households being assigned to treatment A, 97 - to treatment B, 98 - to treatment C, and 104 - to a control group.
Dates of Data Collection
Data Collection Mode
Data Collection Notes
The financial training program worked with 400 Indonesian migrant workers and their households. Almost all of the workers were women, about to go abroad to work as housemaids in Hong Kong, Malaysia, Singapore, and Taiwan. Before they go abroad, their recruiting agencies typically provide some training on job-related matters. The training consisted of 2 days (18 hours) for the migrant worker and/or 2 half-days (8 hours) for their family member. Training covered financial planning and management, budgeting, savings, debt management, sending and receiving remittances, and understanding insurance, all adapted to the local context. Training was designed to be participative, interactive, and applied, and included comic books, brochures, and budget templates. Attendance was high, with 76-91% of those invited attending.
The baseline surveys were conducted on a rolling basis from February to June 2010 to coincide with the training cycle. The baseline survey was directed at the family member of the migrant who would be responsible for receiving remittances and for household decision-making in their absence. In cases where the family member attended training, interviews were done at the training location prior to the commencement of training. For the control group, migrant-training only group, and cases in the other treatments where the family member was invited but didn't show up for training, interviews were done at the dwelling of the household.
Three rounds of follow-up surveys were conducted via in-person interviews. The first follow-up survey took place in March 2011 and interviewed 392 of the 400 households (98%). The second follow-up survey took place in September 2011, and successfully re-interviewed 376 of the 400 households (94%). The third and final follow-up survey took place in January 2012 and interviewed 365 households (91%).
The follow-up surveys were aimed at the family member in charge of receiving remittances and making financial decisions in the household, and effort was made to re-interview the same member each follow-up round.
Identifying information has been removed from datasets
Use of the dataset must be acknowledged using a citation which would include:
- the Identification of the Primary Investigator
- the title of the survey (including country, acronym and year of implementation)
- the survey reference number
- the source and date of download
David McKenzie, Yoko Doi, Bilal Zia, World Bank. Identifying Combined Effects of Financial Education on Migrant Households in Indonesia 2010-2012 (EFEMHRE), Randomized Experiment. Ref. IDN_2010_EFEMHRE_v01_M. Dataset downloaded from [URL] on [date].
Disclaimer and copyrights
The user of the data acknowledges that the original collector of the data, the authorized distributor of the data, and the relevant funding agency bear no responsibility for use of the data or for interpretations or inferences based upon such uses.