Dear All,

The Department of Economics invites you to their weekly seminar on Wednesday, September 03, 2025.

Time: 1:40 PM to 2:50 PM

Venue: AC-04-301

Speaker: Sowmya Dhanaraj

Title: The economic impacts of earned wage access on low income women workers

Abstract: Employer-provided digital financial services (DFS) can enhance the financial resilience of women earning regular but low wages. In a 13-month field experiment at a South Indian garment factory, we introduced an Earned Wage Access (EWA) application via tablets on the factory floor. This app allowed women in the treatment group to access up to 50% of their earned wages before payday, up to three times per month, with instant deposits into their bank accounts. Approximately one-third of the treatment group used the EWA app at least once. These women reduced their reliance on informal loans by 33% and were 20% less likely to cut back on monthly consumption compared to the control group, indicating improved liquidity. Worker turnover decreased significantly, with women in the intervention group being 21% less likely to be exit factory work at the end of study period. Overall earnings rose by 12%, primarily due to women remaining in the labor force longer. Daily productivity also increased by 8.1%, with the most significant gains among workers experiencing high financial stress, whose productivity rose by 23.3%, reflecting reduced financial strain. Importantly, improved liquidity through flexible pay did not lead to overspending but instead fostered confidence in mobilizing funds when needed. However, there were no significant changes in savings behavior or intra-household bargaining power. This study highlights the benefits of pay flexibility and workplace-based DFS solutions for financial well-being, women’s empowerment, and workplace outcomes in developing countries.

Thanks & Regards,

Manish