Working Paper: CEPR ID: DP18254
Authors: Joshua Blumenstock; Michael Callen; Anastasiia Faikina; Stefano Fiorin; Tarek Ghani
Abstract: Building state capacity is uniquely challenging in fragile states. We report results from a randomized evaluation of a major Afghan government initiative to increase capacity by modernizing its payroll. The reform, which required teachers to biometrically register and receive salary payments via mobile money, did little to reduce payments to non-existent 'ghost" workers, but significantly reduced delays. The reform also improved educational outcomes and increased formal financial inclusion. The impacts were not immediate - highlighting the importance of long time-horizons - and were largest in urban areas. The results have implications for state-building and are potentially actionable for policymakers.
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JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| reduced salary payment delays (J33) | improved salary experience for employees (J31) |
| mobile salary payment reform (E69) | reduced salary payment delays (J33) |
| mobile salary payment reform (E69) | improved educational outcomes (I24) |
| mobile salary payment reform (E69) | increased formal financial inclusion (G21) |
| mobile salary payment reform (E69) | improved student test scores in urban areas (I24) |
| mobile salary payment reform (E69) | negative impact on educational outcomes in rural areas (I24) |