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UI Directors’ Conference | October 4, 2016
Chutes and Ladders: Using Behavioral
Economics to Get Customers from A to B
Nadine Dechausay, MDRC
@CABS_MDRC
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Ladders
 Effort
 Balance
 Precision
Chutes
 Easy
 Direct
 Satisfying
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The Behavioral Insights Perspective
• Transforming ladders into chutes
• Based on research in social and applied psychology,
behavioral economics, neuroscience, marketing
• Challenges the standard model of Homo
Economicus
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Humans are, well, human
•
•
•
•
•
•
Limited attention
Put off pain and speed up pleasure
Not great at calculating costs and benefits
Limited self-control
Swayed by our family, peers, and people we respect
Deterred by small hassles
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The Approach
• Start by identifying areas of underperformance
• Study the context, particularly the service delivery
steps surrounding those areas
• Hypothesize about the behavioral bottlenecks that
might be occurring
• Design solutions that are “behaviorally informed”
• Test — Learn — Adapt
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Common “ladders” in human services
programs
1. Information overload
 Washington child support order modification study (BIAS
Project)
2. Framing engagement in terms of mandates, not user’s
self-interest
 Michigan REA pilot (DOL Behavioral Interventions Project)
3. Lack of reminders
 Indiana child care recertification studies (BIAS Project)
4. Providing critical services reactively
 FAFSA study (Bettinger et al., 2011)
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Washington Child Support Study
• Problem: Few incarcerated non-custodial parents
requesting order modifications; leaving prison with
large debt
• Key Bottlenecks: Low awareness; Information
overload
• Solution: Send a prime before full application;
Simplify application with an “Explainer”
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Existing Process (Administrative Order)
Complete “Petition
for Modification”
Complete “Washington State
Child Support Schedule”
Mail completed
forms to Claims
Officer team
Open case for a
modification and justify
request.
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19-page form including
questions about income,
current support obligations,
and child-rearing expenses.
Staff attempt to
come to a
settlement between
parties.
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Intervention
Materials
Washington Study: Impacts
Applications Submitted
45%
40%
35%
30%
25%
31.9%***
41.3%
20%
15%
10%
5%
9.4%
0%
Control Group
Program Group
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Michigan REA Study
• Problem: Lack of engagement in mandatory
employment services for UI claimants
• Key Bottlenecks: Discouragement; Inattention;
Misunderstanding
• Solution: Sent a series of seven emails; Used
language that framed benefits of attending
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Sample
Intervention
Email
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REA Study: Impacts
Impact of emails on percentage of UI claimants who scheduled REA Session
1 and on completion rates for the REA program
80%
70%
16%**
60%
14%**
50%
40%
30%
Did not receive emails
71%
55%
20%
57%
43%
10%
0%
Scheduled REA Session 1
Completed REA Program
Received emails
Indiana Child Care Recertification Studies
• Problem: Missing first scheduled recertification
appointment leaves less time to recertify by
deadline
• Key bottleneck: No reminder; Hassles of collecting
documents and attending appointment
• Solution: Simplify instructions; Combine reminder
and planning prompts
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Existing Process
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Parents receive
appointment letter
with list of required
documents
Gather correct
documents and attend
appointment
CCDF staff evaluates
documents for
eligibility
Indiana Child Care Study: Two tests
Parents due for
CCDF renewal
(1)
New mailing +
reminder
(2)
Standard materials
2 rounds: same basic
design in each
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Intervention Materials: Round 1
Broke list
into four
steps
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Intervention Materials: Round 2
March 1 at 1:00 PM
March 1 at 1:00 PM
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Indiana Child Care Program: Impacts on
attending first appointment
% attending first scheduled appointment
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First round
•
2.6 percentage points more likely to attend their first
scheduled appointment
2.6%*
50
10.6%***
40
Control
Program
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Second round
•
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10.6 percentage points more likely to attend their
first scheduled appointment
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0
Round 1
Round 2
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H&R Block FAFSA Study
• Problem: Millions of students miss out on financial
aid because they do not submit the FAFSA
• Key bottleneck: Hassles; Onus is on parents
• Solution: Knowledgeable staff proactively fill out
form at a moment when information is readily
available
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Existing Process
• 10 pages
• 100 questions + 72
pages of instructions
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FAFSA Study: Test Conditions
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Eligible tax completers
in an H&R Block office
(1)
FAFSA Assistance
+ Eligibility
Information
(2)
Eligibility
Information Only
(3)
Control
FAFSA Study: Impacts
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Percentage Completing the FAFSA and Attending College
60%
50%
14.6%**
Control
Information Only
FAFSA & Information
40%
30%
20%
54.8%
6.9%**
40.2% 40.2%
26.8% 26.8%
10%
33.7%
0%
FAFSA Completion
College Attendance
Summary
• We may be creating barriers without intending to
• Look for “paradoxes”- cases where there is a clear
benefit but target audience is not taking full
advantage
• Study the context
• Test behavioral solutions
• Be willing to fail and try again
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MDRC’s Center for Applied Behavioral
Science (CABS)
•
•
EXPERTISE IN:

SOCIAL PROGRAMS (EMPLOYMENT
SERVICES, DISABILITIES, EDUCATION,
FAMILY ISSUES)

BEHAVIORAL INTERVENTION DESIGN

RCTs

TECHNICAL ASSISTANCE
LED LARGE SCALE EVALUATIONS OF
BEHAVIORAL INTERVENTIONS (BIAS, BIASNext Generation, BICS)
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Contact
[email protected]
@CABS_MDRC
th
15 :
Webinar, November
Incorporating Behavioral Insights into Everyday
Practices to Improve Program Operations