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Abdul Latif Jameel Poverty Action Lab

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The Abdul Latif Jameel Poverty Action Lab (J-PAL) is a global research center based at the Massachusetts Institute of Technology aimed to reducing poverty by ensuring that policy is informed by rigorous, scientific evidence.[1][2] J-PAL funds, provides technical support to, and disseminates the results of randomized controlled trials evaluating the efficacy of social interventions in health, education, agriculture, and a range of other fields.[2] As of 2020, the J-PAL network consisted of 500 researchers and 400 staff, and the organization's programs had impacted over 400 million people globally.[1] The organization has regional offices in seven countries around the world,[3] and is headquartered near the Massachusetts Institute of Technology in Cambridge, Massachusetts.[2]

Abdul Latif Jameel Poverty Action Lab (J-PAL)
AbbreviationJ-PAL
Founded2003; 21 years ago (2003)[1]
Founder
TypeResearch institute
FocusEconomic research, poverty alleviation
HeadquartersCambridge, Massachusetts, U.S.
Coordinates42°21′45″N 71°5′16″W / 42.36250°N 71.08778°W / 42.36250; -71.08778
Area served
Worldwide
MethodRandomized controlled trials
Directors
Esther Duflo
Abhijit Banerjee
Benjamin Olken
AffiliationsMassachusetts Institute of Technology (MIT)
Employees
400+[1]
Websitehttps://www.povertyactionlab.org/
Formerly called
Jameel Poverty Action Lab

In 2019, the Nobel Memorial Prize in Economic Sciences was jointly awarded to J-PAL co-founders Esther Duflo and Abhijit Banerjee, alongside economist Michael Kremer, "for their experimental approach to alleviating global poverty".[4] The Nobel committee highlighted Duflo and Banerjee's work building J-PAL in their report on the scientific background for the award, noting that the organization was "vital" in promoting the acceptance of randomized controlled trials as an empirical technique in development economics.[5] Nicholas Kristof of The New York Times has described J-PAL as leading a "revolution in evaluation".[6]

History

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J-PAL was founded in 2003 as the "Poverty Action Lab" by Abhijit Banerjee, Esther Duflo, and Sendhil Mullainathan, all of the economics department at the Massachusetts Institute of Technology.[4] Initial funding for the research center was approved by MIT economics department chair Bengt Holmström in an effort to convince Duflo and her colleagues to stay in the department despite outside opportunities.[4] The research center was early on championed by MIT president Susan Hockfield, who promoted it to MIT's pool of donors.[4] In 2005, it was endowed by Mohammed Jameel of Saudi Arabia's Abdul Latif Jameel Corporation, and renamed the "Abdul Latif Jameel Poverty Action Lab (J-PAL)".[4] Subsequently, J-PAL has also received financial support from the Bill & Melinda Gates Foundation,[7] Open Philanthropy[8], Good Ventures[9], and USAID's Development Innovation Ventures.[10]

In 2004, Rachel Glennerster, a British economist and the wife of 2019 Nobel Prize co-laureate Michael Kremer, became executive director of J-PAL.[11][12] She held the role until 2017, when she became chief economist of the United Kingdom's Department for International Development.[11] In 2018, Iqbal Dhaliwal, a former Indian Administrative Service officer and the husband of former IMF chief economist Gita Gopinath, became J-PAL's new global executive director.[13] Dhaliwal sits on J-PAL's executive committee, which also includes Duflo, Banerjee, Amy Finkelstein, Rema Hanna, Kelsey Jack, Benjamin Olken, and Tavneet Suri.[14]

 
Esther Duflo, J-PAL Co-Founder, MIT Professor, 2019 Nobel Prize Laureate
 
Abhijit Banerjee, J-PAL Co-Founder, MIT Professor, 2019 Nobel Prize Laureate
 
Sendhil Mullainathan, J-PAL Co-Founder, UChicago Professor

J-PAL opened its first regional office in 2007 at the Institute for Financial Management and Research in Chennai, Tamil Nadu.[15] N. R. Narayana Murthy, co-founder of Infosys, was the keynote speaker at the launch event.[15] In line with J-PAL's initial focus on South Asia, Many of Duflo and Banerjee's first successful randomized impact evaluations were situated in India. For example, among Duflo's earliest papers is an evaluation of a program in which one third of Village Council head positions in India are randomly reserved for women.[2][16] The paper finds that councils led by women invest more in roads and drinking water, public goods that they find women are relatively more likely to complain about in formal requests to Gram panchayats.[16] To support work of affiliates in other regions of the world, J-PAL subsequently opened additional hubs in South Africa, Chile, Indonesia, Egypt, France, and the United States, each affiliated with a local university.

In 2011, Duflo and Banerjee promoted the work of J-PAL in their best-selling book Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, which won the Financial Times Business Book of the Year Award the same year.[17] The Economist praised the book for exemplifying "a more evidence-based approach to development economics", and recommended it as one of the five best texts to read to understand the escape from extreme poverty.[18] William Easterly, a professor of economics at NYU and longstanding critic of foreign aid, wrote in the Wall Street Journal of the book that "[Duflo and Banerjee] have fought to establish a beachhead of honesty and rigor about evidence, evaluation and complexity in an aid world that would prefer to stick to glossy brochures and celebrity photo-ops. For this they deserve to be congratulated—and to be read."[19]

In 2019, Duflo and Banerjee were selected as the co-recipients of the Nobel Memorial Prize in Economic Sciences, alongside Michael Kremer, then of Harvard University.[4] In their report on the scientific background for the award, the Nobel committee explicitly acknowledged Duflo and Banerjee's work building J-PAL, noting that the organization "has promoted research built on randomized controlled trials in many countries and promoted the acceptance of results from such trials in the economic-policy community."[5]

J-PAL's success has inspired the widespread acceptance of randomized controlled trials in development economics, and has encouraged their use in organizations and by academics outside their network.[2][5] At approximately the same time as J-PAL was created, Dean Karlan founded Innovations for Poverty Action, an NGO and longstanding partner of J-PAL that also promotes the use of rigorous impact evaluation in development economics.[5] In 2008, Edward Miguel, a development economist and co-author of 2019 Nobel Prize co-laureate Michael Kremer, founded the Center for Effective Global Action at UC Berkeley to pursue a similar goal.[5] J-PAL's success has also inspired successful impact evaluations at multilateral development agencies such as the World Bank.[2] In line with qualitative accounts of J-PAL's influence in popularizing experimental research methods,[5][6] a paper by Janet Currie and co-authors in the papers and proceedings of the American Economic Association observed that the share of NBER working papers leveraging randomized controlled trials increased from less than 5% to almost 15% between 1980 and 2018.[20]

Activities

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Although J-PAL was founded as a research center, its activities encompass three primary areas: field research, policy outreach, and capacity building.[1] Its activities are supervised by a staff of over 400[1] spread across its global headquarters in Cambridge, Massachusetts and seven regional offices around the world.

Field research

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J-PAL's primary purpose is to ensure that policies aimed at reducing poverty are informed by rigorous scientific evidence. As part of this mission, it supports randomized controlled trials by distributing grants, hiring and managing survey enumerators, and disseminating information on sampling, randomization, and other stages of the research process.

Agricultural Technology Adaption Initiative

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One of J-PAL's primary research initiatives is the Agricultural Technology Adaption Initiative (ATAI), co-led with the Center for Effective Global Action at the University of California, Berkeley.[21] ATAI supports randomized controlled trials evaluating interventions aimed at reducing poverty by increasing agricultural productivity.[21] In the last ten years, the initiative has conducted over 50 evaluations across 17 countries.[21] In line with its efforts to improve agricultural productivity, ATAI has funded randomized controlled trials evaluating the use of text messages to deliver tailored agricultural extension services to small-scale farmers in Kenya and the Indian state of Gujarat.[22] The evaluations found that mobile extension services substantially increase the likelihood that farmers adopt recommended agricultural strategies, raising yields in a cost effective manner.[23][24] In response, Michael Kremer and others founded Precision Agriculture for Development, an NGO that delivers tailored agricultural advice to small-scale farmers in the developing world.[22]

Social Protection Initiative

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J-PAL also co-leads a Social Protection Initiative in collaboration with the Center for International Development at the Harvard Kennedy School of Government.[25] The initiative is co-led by Rema Hanna and Benjamin Olken, and supports randomized controlled trials examining social protection schemes in low and middle income countries.[25]

Science for Progress Initiative

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In November 2022, J-PAL launched an additional division, its Science for Progress Initiative, under the leadership of Heidi Williams and Paul Niehaus,[26] of Dartmouth College and the University of California, San Diego, respectively. The initiative funds and helps design randomized impact evaluations aimed at finding policies that catalyze the rate of scientific progress.[26] The initiative is supported by a $650,000 grant from Open Philanthropy.[27]

Capacity building

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J-PAL also promotes the use of scientific evidence in public policy by running trainings and distributing materials aimed at improving the capacity of researchers and governments to conduct evaluations and use them to make decisions.[1] One example is a MicroMasters program offered in conjunction by J-PAL and MIT in "Data, Economics and Design of Policy".[28] The MicroMasters program has over 1,000 alumni, and qualifies its recipients to apply for a Master's degree at MIT.[28] It focuses on topics in economics, statistics, and mathematics, and also includes practical content of the design and implementation of randomized evaluations.[28] Instructors in the program include Esther Duflo, Abhijit Banerjee, Rachel Glennerster, Jonathan Gruber, and David Autor.[28]

Structure

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J-PAL is headquartered in Cambridge, Massachusetts and affiliated with the economics department of the Massachusetts Institute of Technology. It is currently co-directed by Esther Duflo, Abhijit Banerjee, and Benjamin Olken, all of whom are economics professors at MIT. J-PAL's global office is supplemented by seven regional offices that support the organization's work across their respective regions of the world. Each regional office is affiliated with a local university:

J-PAL is organized both by these regional offices and by research themes called sector programs. Programs are led by members of the organization's board of directors, and cover eight areas:

  • Agriculture
  • Crime
  • Education
  • Energy and Environment
  • Finance
  • Health
  • Labor Markets
  • Political Economy & Governance

J-PAL is currently led by Professors Abhijit Banerjee, Esther Duflo and Ben Olken as Faculty Directors and Iqbal Dhaliwal as the Global Executive Director.[14] J-PAL's Board of Directors sets the vision and strategy for the organization and includes the Global Directors and executive director, Regional Scientific Directors and executive directors, and Chairs of the Sector Programs. In 2019, J-PAL co-founders Abhijit Banerjee and Esther Duflo, and long time research affiliate Michael Kremer were awarded the Nobel prize in economics "for their experimental approach to alleviating global poverty."[33]

Partnerships

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Innovations for Poverty Action (IPA) is a close partner of the Abdul Latif Jameel Poverty Action Lab (J-PAL). The two organizations share a common mission and take similar methodological approaches to development policy evaluation, though J-PAL works through universities and makes use of academic resources, while IPA, as a nonprofit, operates through country offices. Both organizations have pioneered the use of randomized evaluations to study the effectiveness of development interventions worldwide and have collaborated extensively on field studies involving randomized evaluations. A number of J-PAL Affiliates are also IPA Research Affiliates or IPA Research Network Members. The work of both organizations is featured in the popular press books More Than Good Intentions by Dean Karlan and Jacob Appel, and in Banerjee and Duflo's 2011 book, Poor Economics, which was chosen as the 2011 Financial Times and Goldman Sachs Business Book of the Year Award.[34]

Other J-PAL research partners include the Centre for Micro Finance,[35] Harvard Kennedy School's Center for International Development's Micro-Development Initiative, the Center of Evaluation for Global Action, Ideas 42,[36] Educate!,[37] the Small Enterprise Finance Center,[38] and the Global Innovation Fund.[39][40]

Notable Results

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J-PAL affiliates have published several randomized controlled trials that have received substantial media coverage or had outsized policy influence. Listed below are several prominent examples.

Teaching at the right level

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Among J-PAL's earliest successful experiments was its evaluation of "Teaching at the Right Level", a remedial education scheme developed by Indian NGO Pratham aimed at bridging learning gaps in developing countries by evaluating students based on ability, and teaching them in groups based on these skills rather than grade level or other characteristics.[41][42] Pratham's approach was developed in the early 2000s, and the first "proof of concept" trial of its efficacy was published by Abhijit Banerjee, Esther Duflo, and co-authors in 2007.[41] The trial found that the program substantially increased standardized test scores in mathematics and language skills.[41][43] A second evaluation of the program was published in 2010, revealing similar results, albeit with substantial implementation issues such as low take-up of the scheme and attrition by volunteers.[41]

"Teaching at the Right Level" programs have subsequently been scaled in a number of countries around the world, such as India,[41] Zambia,[42] Kenya,[44] and Nigeria.[44] The scale-up of the scheme has been supported by Teaching at the Right Level Africa, a non-profit organization that as of 2022 had directly or indirectly supported programs impacting over 4 million children across Sub-Saharan Africa.[45] The Teaching at the Right Level approach has been encouraged by organizations such as UNICEF as an effective method for bridging achievement gaps between high and low performing students.[46]

Microfinance

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One of J-PAL's most influential lines of research was its experimental evaluations of microfinance programs aimed at alleviating poverty by providing the extreme poor access to loans without collateral or credit histories. Microfinance rose to prominence in the 1990s,[47] culminating in a Nobel Peace Prize for Bangaldeshi NGO Grameen Bank and its founder, Muhammad Yunus, in 2006.[48] Beginning in 2005, Banerjee, Duflo, Rachel Glennerster, and Cynthia Kinnan partnered with the Indian NGO Spandana to deliver loans of approximately $250 to poor women in the city of Hyderabad.[47] With funding and support from J-PAL,[49] the researchers tracked participating women for three years, finding no effects of the program on measures of educational attainment, health, or female empowerment.[47] Several follow on studies conducted by J-PAL affiliates in different geographic contexts have yielded similar results,[50][51] providing limited systematic evidence that microfinance has a transformative impact on recipient's lives.[48][52][53] The research has prompted a relative decrease in the popularity of microfinance versus cash transfers and other social interventions shown in rigorous impact evaluations to have strong positive effects.[47]

Medical debt

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Between 2018 and 2020, J-PAL supported a large-scale randomized controlled trial evaluating the effects of relieving medical debt on mental and financial health.[54][55] The study was conducted by Neale Mahoney, Raymond Kluender, Francis Wong, and Wesley Yin in partnership with RIP Medical Debt, a nonprofit organization.[54] Between 2018 and 2020, the organization randomly allocated $169 million in debt relief across 83,400 people, allowing the researchers to evaluate the causal effects of the program.[54] The study found that medical debt relief had surprisingly muted effects on financial and mental health,[55] with only marginal improvements in credit scores.[54] The experiment also found that debt relief increased the prevalence of depression, likely because the relief elicited shame or reminded respondents of other unclaimed debts.[54] The results of the study contradicted the expectations of experts polled prior to the release of its results,[54] in addition to previously collected survey responses that indicated medical debt had detrimental effects for their mental health.[55]

Experiments and findings in India

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J-PAL has conducted extensive work in India. Below are some examples of experiments and findings in India:[56]

  • Teaching at the Right Level: J-PAL-affiliated researchers partnered with the organization Pratham to conduct numerous randomized evaluations of their Teaching at the Right Level (TaRL) approach. The research shows that TaRL consistently improves learning when implemented well.[57]
  • AP Smartcards: Assessed impact of Smartcards on leakages in MGNREGS and social security pensions in AP and found that it reduced time taken by beneficiaries to receive payments, reduced leakages, and increased user satisfaction.
  • Haryana Schools: Experimented with teaching students at their actual learning levels, rather than the grade they are in. Such students did better at Hindi but no better at maths.
  • Bihar MGNREGA: Conducted 12 districts and is testing impact on payment delays and corruption in a new official system of funds release.
  • Rajasthan Police: Conducted between 2005 and 2008, the study involved sending decoys to police stations with fictitious complaints, and analyzing how many cases were actually registered, as well as how policing could be improved.
  • Delhi Deworming: Conducted in 2001–02, showed giving iron, vitamin A supplements and deworming drugs to 2- to 6-year-old children through balwadis greatly increased their weight and school participation.
  • Udaipur Absent Teachers: In 2003, showed how financial incentives and fines increased teacher attendance, leading to improved learning outcomes for students.
  • Gujarat Pollution Auditing: Experimented with third party pollution audits of industrial firms paid for by a central pool, instead of by the firm itself; found that such independently paid for auditors reported higher levels of pollution.
  • Nurse Attendance: Showed monitoring nurses attendance and fining them for absenteeism led to dramatic improvement in attendance until local administration undermined the scheme.

Awards

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References

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  31. ^ J-PAL's regional office in Southeast Asia, based at the University of Indonesia. Official J-PAL website. Retrieved 2013-8-23
  32. ^ "News – 2013 – MIT's Jameel Poverty Action Lab launches regional office for North America". shass.mit.edu. MIT SHASS. Retrieved 14 March 2018.
  33. ^ "J-PAL Co-Founders and Affiliate awarded 2019 Nobel Prize". 15 October 2019.
  34. ^ a b "FT & McKinsey Business Book of the Year Award". Financial Times. Retrieved 14 March 2018.
  35. ^ "IFMR-Centre for Micro Finance". July 17, 2011. Archived from the original on 2011-07-17.
  36. ^ "ideas42 | Asking the Right Questions". June 25, 2011. Archived from the original on 2011-06-25.
  37. ^ "Educate!". www.povertyactionlab.org. The Abdul Latif Jameel Poverty Action Lab. Retrieved 14 March 2018.
  38. ^ "IFMR - Small Enterprise Finance Centre: Applied research for SME development". July 31, 2011. Archived from the original on 2011-07-31.
  39. ^ "Reducing Anemia". Global Innovation Fund. Retrieved 2023-10-20.
  40. ^ "J-PAL Health Insurance Project". Global Innovation Fund. Retrieved 2023-10-20.
  41. ^ a b c d e Banerjee, Abhijit; Banerji, Rukmini; Berry, James; Duflo, Esther; Kannan, Harini; Mukerji, Shobhini; Shotland, Marc; Walton, Michael (2017-11-01). "From Proof of Concept to Scalable Policies: Challenges and Solutions, with an Application". Journal of Economic Perspectives. 31 (4): 73–102. doi:10.1257/jep.31.4.73. ISSN 0895-3309.
  42. ^ a b Neal, Meagan (2018-12-21). "It's hard to design good policies. This simple idea can help governments do it". Vox. Retrieved 2024-07-11.
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  45. ^ "Teaching at the Right Level Africa". Teaching at the Right Level Africa. Retrieved 2024-07-11.
  46. ^ "Teaching at the Right Level: A solution focused to address learning losses in foundational learning". UNICEF. Retrieved 2024-07-12.
  47. ^ a b c d Blattman, Chris; Niehaus, Paul (2014-06-17). "Show Them the Money: Why Giving Cash Helps Alleviate Poverty". Foreign Affairs. Retrieved 2024-07-12.
  48. ^ a b Blattman, Chris (2015-03-03). "If you read one thing about microfinance, read this". Washington Post.
  49. ^ Banerjee, Abhijit; Duflo, Esther; Glennerster, Rachel; Kinnan, Cynthia (2015-01-01). "The Miracle of Microfinance? Evidence from a Randomized Evaluation". American Economic Journal: Applied Economics. 7 (1): 22–53. doi:10.1257/app.20130533. ISSN 1945-7782.
  50. ^ Angelucci, Manuela; Karlan, Dean; Zinman, Jonathan (2015-01-01). "Microcredit Impacts: Evidence from a Randomized Microcredit Program Placement Experiment by Compartamos Banco". American Economic Journal: Applied Economics. 7 (1): 151–182. doi:10.1257/app.20130537. ISSN 1945-7782.
  51. ^ Crépon, Bruno; Devoto, Florencia; Duflo, Esther; Parienté, William (2015-01-01). "Estimating the Impact of Microcredit on Those Who Take It Up: Evidence from a Randomized Experiment in Morocco". American Economic Journal: Applied Economics. 7 (1): 123–150. doi:10.1257/app.20130535. ISSN 1945-7782.
  52. ^ Meager, Rachael (2019-01-01). "Understanding the Average Impact of Microcredit Expansions: A Bayesian Hierarchical Analysis of Seven Randomized Experiments". American Economic Journal: Applied Economics. 11 (1): 57–91. doi:10.1257/app.20170299. ISSN 1945-7782.
  53. ^ Banerjee, Abhijit; Karlan, Dean; Zinman, Jonathan (2015-01-01). "Six Randomized Evaluations of Microcredit: Introduction and Further Steps". American Economic Journal: Applied Economics. 7 (1): 1–21. doi:10.1257/app.20140287. ISSN 1945-7782.
  54. ^ a b c d e f Scott, Dylan (2024-05-02). "What if canceling people's medical debt doesn't help them?". Vox. Retrieved 2024-07-11.
  55. ^ a b c Kliff, Sarah (2024-04-08). "Paying Off People's Medical Debt Has Little Impact on Their Lives, Study Finds". The New York Times. Retrieved 2024-07-11.
  56. ^ "J-PAL in India". The Hindu. Retrieved 14 March 2018.
  57. ^ Abhijit Banerjee; Rukmini Banerji; James Berry; Esther Duflo; Harini Kannan; Shobhini Mukerji; Marc Shotland; Michael Walton (2017). "From Proof of Concept to Scalable Policies: Challenges and Solutions, with an Application". Journal of Economic Perspectives. 31 (4): 73–102. doi:10.1257/jep.31.4.73.
  58. ^ "J-PAL captures major new international award". 20 January 2009. Retrieved 14 March 2018.
  59. ^ "The FP Top 100 Global Thinkers". Retrieved 14 March 2018.
  60. ^ "Statement of Commendation". The Social Science Research Council Albert O. Hirschmann Prize. Archived from the original on 3 April 2014. Retrieved 15 January 2015.
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