Abstract
This paper examines whether light-touch behavioral interventions can enhance the productive use of economic inclusion program payments among cash transfer recipients in Ghana. Drawing on a cluster-randomized controlled trial (N=3,109), we evaluate the impacts of tailored behavioral designs aimed at addressing decision-making barriers to saving and productive investment among recipients of Ghana Productive Safety Net Project’s Complementary Livelihood and Asset Support Scheme (CLASS). Participants in 104 communities were randomized to receive a suite of behavioral components, including structured goal-setting, plan-making exercises, savings tools, and reminders, designed to address behavioral barriers such as present bias and limited future orientation. Compared to control groups, recipients exposed to the behavioral intervention exhibited statistically significant increases in goal-setting and plan-making behaviors related to savings and consequently, increased the incidence of saving among study participants receiving the behavioral interventions. However, the study did not find a statistically significant impact of the behavioral interventions on improving business skills. Our findings suggest that integrating behavioral insights into cash-based social protection programs can meaningfully improve how recipients allocate and leverage payments toward building financial resilience and achieving longer-term economic objectives, though further research is needed on the long-term effects.