Abdul Latif Jameel Poverty Action Lab (J-PAL)

GiveDirectly, a nonprofit co-founded by MIT and Harvard alumni, works with “economists to identify the most efficient ways to reduce poverty,” reports Katharine Houreld for The Washington Post. “Lump sums are the most efficient way to give cash, according to a study of GiveDirectly programs released in December that compared the impact of three methods,” explains Houreld. “Two years in, recipients of the lump sum have spent more money on health care, and more of their children have scored better on school exams, according to the study by MIT economics professor Abhijit Banerjee and others." 

Prof. Amy Finkelstein speaks with New York Times reporter Sarah Kliff about “the impact of medical debt relief on individuals.” “The idea that maybe we could get rid of medical debt, and it wouldn’t cost that much money but it would make a big difference, was appealing,” says Finkelstein. “What we learned, unfortunately, is that it doesn’t look like it has much of an impact.”

Prof. Joseph Doyle and his colleagues are studying whether type 2 diabetes could be treated or improved by nutrition, reports Donna Eastlake for Food Navigator.

Prof. Abhijit Banerjee shares advice with Nature reporter Helen Pearson for those in science careers looking to find “satisfaction from their work – and make a difference to the world.” Banerjee attributes “his own career to a series of happy accidents,” writes Pearson. Banerjee says, “a lot of it is accidents that make us who we are…sometimes we learn something about ourselves as a result of them.”

New research by Prof. Tavneet Suri and Prof. Abhijit Banerjee explores how to most effectively direct cash to low-income households, reports Dylan Matthews for Vox.  Suri and Banerjee compare “three groups: short-term basic income recipients (who got the $20 payments for two years), long-term basic income recipients (who get the money for the full 12 years), and lump sum recipients, who got $500 all at once, or roughly the same amount as the short-term basic income group,” writes Matthews. “Suri and Banerjee found that the lump sum group earned more, started more businesses, and spent more on education than the monthly group.”

Prof. Tavneet Suri discusses GiveDirectly, the world’s largest universal basic income (UBI) program, which has been providing almost 5,000 people in Kenya with “a payment of about 75 cents (62p) a day since 2017,” reports Philippa Kelley for The Guardian. “We do see people leaving low wage jobs,” says Suri. “They are going and starting businesses, and the businesses are doing great because there’s money around.”

In an article for The Hill, Vincent Quan, co-executive director of J-PAL North America, outlines how new governors should rely on evidence when investing in government programs. “Governors should invest in programs that are most likely to improve the lives of their constituents,” writes Quan. “However, determining which programs work and which do not is far easier said than done. Not all programs work as intended.”

Prof. Esther Duflo speaks with New York Times reporter Peter Wilson about how climate change can impact global inequality. “The responsibility for the emissions that lead to climate change rests mainly with rich countries and their consumers, but the cost is mainly going to be borne by citizens in poor countries,” says Duflo. 

MIT and Harvard startup GiveDirectly, “identifies poor people and villages, usually in developing countries in sub-Saharan Africa, and distributes cash to them directly, usually via cellphone payment, instead of donations like food and livestock,” reports Dylan Matthews for Vox.

J-PAL research manager Jesse Gubb writes for STAT about how voluntary innovation tests can lead to providers favoring profitable programs over what is best for patients and can make potential reforms harder to evaluate. “The Center for Medicare and Medicaid Innovation is in the rare position of being empowered to develop innovative payment models and prospectively evaluate them,” writes Gubb. “Mandatory, national randomized evaluations ensure that the already significant effort to develop the models will yield the rigorous evidence needed to support decisions on whether to scale and adopt them broadly.”

A new study by MIT economists finds that a one-time economic boost can help improve a person’s income, mental health and productivity even a decade later, reports Kristin Toussaint for Fast Company. “There is one very common concern, that somehow they will become lazy as a result of getting this opportunity; and if anything, we find the opposite. They work a little harder,” says Professor Abhijit Banerjee. “But most importantly, they’re enterprising.” 

Speaking at the Fast Company Innovation Festival, Profs. Esther Duflo and Abhijit Banerjee underscored the need for “governments need to do better in addressing different needs within their populations, and providing variations of cash relief for different circumstances.”

A new study by MIT economists finds that sleeping more may not improve performance or well-being, especially if night-time sleeping is often interrupted, reports Arianne Cohen for Fast Company. “The researchers say their findings suggest that sleep quality may be essential,” writes Cohen. “Participants experienced many nightly sleep interruptions, a saga familiar to anyone who lives with children.”

Profs. Esther Duflo and Abhijit Banerjee speak with Axios reporter Dave Lawler about how the failure of rich countries to share Covid-19 vaccines and financial assistance will exacerbate global poverty and lead to increased resentment. "Nobody is talking of expanding aid,” says Banerjee. “I think the psychology, unfortunately, in rich countries somehow — even though the U.S. is going to grow faster in this year than it has in modern memory — is that we are in dire straits and we need to keep resources.”

Prof. Esther Duflo speaks with Mikaela Cohen of CNBC about how gender inequality, access to childcare and vaccine access are among the issues impacting the return to work in the U.S. and the global economic recovery. “We realized the current system is just not very workable. It just barely works,” says Duflo. “Women sustain themselves by pulling on their own boot straps.”