Heather Schofield

Heather Schofield (Working), Ramadan Fasting and Economic Output.

Abstract: Religion remains an important force in the lives of many individuals, with approximately 85 percent of the world’s population expressing some religious belief. Yet, the literature on religion’s impact on economic outcomes remains relatively sparse, driven in part by challenges around identification. This paper explores one element of religion’s impact on economic outcomes by examining the impact of the observance of Ramadan on economic output of farmers in India. The analysis leverages heterogeneity in cropping cycles between and within districts as well as the fact that Ramadan cycles throughout the calendar year to generate three sources of variation in the overlap between Ramadan and the labor intensive portions of the cropping cycle. Using a difference-in-differences-in-differences approach, I find that overlap between Ramadan and the labor intensive portions of cropping cycles results in declines in production which correspond to approximately 1 percent of agricultural GDP in India annually and a 20 to 40 percent decrease in productivity per fasting individual. These changes appear to be driven by changes in labor productivity and are not substantially compensated for via other potential margins of adjustment such as increased draft labor. Although identification is less precise, additional analyses suggest that productivity declines are driven primarily by reduced caloric intake rather than by other behavioral changes during Ramadan.

Pedro Bessone, Gautam Rao, Frank Schilbach, Heather Schofield, Mattie Toma (Working), Sleepless in Chennai: The Consequences of Increasing Sleep among the Urban Poor.

Abstract: One-third of our time is dedicated to sleep, yet little is known about the levels and consequences of sleep deprivation, especially in the developing world. To begin to address this gap, this paper measures the prevalence and consequences of sleep deprivation among the urban poor in India via an RCT.  Low-income adults in Chennai sleep little and poorly: 5.6 hours of objectively-measured sleep per night, despite 8 hours in bed. Their sleep can be increased substantially: three-week randomized treatments providing simple devices, encouragement, and financial incentives increased sleep by over 30 minutes per night. Offering short naps at the workplace in the afternoon also increased daily sleep. However, increased  night sleep had no detectable effects on cognition, productivity, economic decision-making, or physical health, and led to small decreases in labor supply.  In contrast, naps improved cognition, subjective well-being, and labor productivity. Naps also reduced inattention to incentives and present bias, and increased financial savings. Our results provide a possible explanation for the persistence of widespread sleep deprivation and the relatively high prevalence of afternoon naps in many developing countries.

Emma Dean, Frank Schilbach, Heather Schofield (2018), Poverty and Cognitive Function, The Economics of Poverty Traps.

Abstract: This paper is a primer for economists interested in the relationship between poverty and cognitive function. We begin by discussing a set of underlying aspects of cognitive function relevant to economic decision-making – attention, inhibitory control, memory, and higherorder cognitive functions – including descriptions of validated tasks to measure each of these areas. Next, we review literature that investigates channels through which poverty might impact cognitive function and economic behavior, by discussing already existing knowledge as well as less well-researched areas that warrant further exploration. We then highlight ways in which the different aspects of cognitive function may impact economic outcomes, discussing both theoretical models and empirical evidence. Finally, we conclude with a discussion of open research questions and directions for future research.

Frank Schilbach, Heather Schofield, Sendhil Mullainathan (2016), The Psychological Lives of the Poor, American Economic Review, Papers & Proceedings.

Abstract: All individuals rely on a fundamental set of mental capacities and functions, or bandwidth, in their economic and non-economic lives. Yet, many factors associated with poverty, such as malnutrition, alcohol consumption, or sleep deprivation, may tax this capacity. Previous research has demonstrated that such taxes often significantly alter judgments, preferences, and decision-making. A more suggestive but growing body of evidence points toward potential effects on productivity and utility. Considering the lives of the poor through the lens of bandwidth may improve our understanding of potential causes and consequences of poverty.

Heather Schofield, J. Kopsic, Kevin Volpp, George Loewenstein (2015), Comparing the effectiveness of individualistic, altruistic, and competitive incentives in motivating completion of mental exercises, Journal of Health Economics, 44, pp. 286-299.

Abstract: This study examines the impact of individually oriented, purely altruistic, and a hybrid of competitive and cooperative monetary reward incentives on older adults’ completion of cognitive exercises and cognitive function. We find that all three incentive structures approximately double the number of exercises completed during the six-week active experimental period relative to a no incentive control condition. However, the altruistic and cooperative/competitive incentives led to different patterns of participation, with significantly higher inter-partner correlations in utilization of the software, as well as greater persistence once incentives were removed. Provision of all incentives significantly improved performance on the incentivized exercises. However, results of an independent cognitive testing battery suggest no generalizable gains in cognitive function resulted from the training.

Heather Schofield (Working), The Economic Costs of Low Caloric Intake: Evidence from India.

Abstract: Many of the world’s poor consume very few calories; one-seventh of the world’s population remains below recommended intake levels. Yet, the impact of this nominally low caloric intake on productivity is unclear. This paper presents two analyses which find that changes in caloric intake result in substantial and broadly generalizable changes in productivity among malnourished adults in India. The first draws on a five-week randomized controlled trial among cycle-rickshaw drivers in Chennai, in which half of the participants received an additional 700 calories per day. Treated individuals showed significant improvements in both physical and cognitive tasks and increased labor supply and income by approximately 10 percent by the final week. The second study examines the impact of a 700 calorie per day decline in intake, caused by fasting during Ramadan, on agricultural production. This analysis leverages heterogeneity in cropping cycles between and within districts as well as the fact that Ramadan cycles throughout the calendar year to generate three sources of variation in the overlap between fasting and the labor intensive portions of the cropping cycle. Using a triple-difference approach, I find that overlap between Ramadan and the labor intensive portions of cropping cycles results in declines in production which correspond to a 20 to 40 percent decrease in productivity per fasting individual. Multiple sources of evidence suggest that production declines are driven primarily by reduced caloric intake rather than by other behavioral changes during Ramadan. The estimated return to investment in additional calories is positive, with point estimates of 75 percent over six months in the randomized trial and 225 percent over one month during Ramadan fasting. Given substantial evidence that traditionally hypothesized liquidity constraints do not meaningfully limit caloric consumption, the low caloric intake of the majority of Indian adults presents a puzzle in light of the high estimated returns. Responses from an incentivized survey suggest that inaccurate beliefs about both the returns to calories and the caloric content of foods may play a role in the low levels of caloric consumption.