Michael Sanders and Elspeth Kirkman
Finding a job, especially in a recovering economy, is challenging and success is reliant upon effective job-search activity. Jobseekers Allowance (JSA) welfare benefit claimants in the United Kingdom have many competing options available to them in terms of how they direct their efforts in looking for work. Often it is hard to determine which is most productive. Unsurprisingly, Jobcentres – the organisations that support JSA claimants during their unemployment – themselves have very strong links to the labour market. For example, they are often invited to run recruitment events in direct partnership with large employers seeking to hire in bulk. At Bedford Jobcentre, we observe that, despite the relatively high likelihood of gaining work from attending such events, jobseeker attendance rates are still low and, instead, we can only assume that jobseekers may be taking part in less productive work search activities. This paper reports the results of a randomised control trial designed to test the effectiveness of mobile phone text messaging in compelling jobseekers in the Bedford area to attend such events. Tailored text messages are found to significantly increase the likelihood of attendance. We find text messages to be particularly effective when they evoke a sense of reciprocity in the recipient.
Michael Sanders and Elspeth Kirkman
When and how should a fundraiser ask for a donation from an individual facing an uncertain bonus income? A standard model of expected utility over outcomes predicts that the individual’s before choice – her ex-ante commitment conditional on her income – will be the same as her choice after the income has been revealed. Deciding “if you win, how much will you donate?” involves a commitment (i) over a donation for a state of the world that may not be realized and (ii) over uncertain income. Models involving reference-dependent utility, tangibility, and self-signaling predict more giving before, while theories of affect predict more giving after. In our online field experiment at a UK university, as well as in our laboratory experiments in Germany, charitable giving was significantly larger in the Before treatment than in the After treatment for male subjects, with a significant gender differential. Lab treatments isolated distinct mechanisms: for men, donations were higher in all treatments where the donation’s collection was uncertain, whether or not the income was known. This supports a (self)-signaling explanation: commitments realized with a lower probability must involve larger amounts to have the same signaling power. Our results are directly relevant to fundraising and volunteer-recruitment strategies, and offer further evidence that we need to exercise caution in applying expected-utility theory in the presence of social preferences.
Keywords: Charitable giving, social preferences, gender, public goods, experiments, field experiments, signaling,
prospect theory, contingent decision-making, bonuses, uncertainty, affective state.
