Market Participation and Response to Incentives When Money Grows on Trees: Evidence from a Field Experiment (original) (raw)

Abstract

We use data from a field experiment at 15 elementary schools to examine the effective of financial incentives that increase the fraction of children eating a serving of fruit or vegetable as part of their school lunch. We were able to raise the fraction of children eating fruits or vegetables at lunch by 22 percentage points when offering a nickel each day and by 43 percentage points when offering a quarter (relative to a baseline rate of 33 percentage points). We find that offering a raffle ticket for a cash equivalent prize was less effective than providing a cash reward and that children are more responsive to immediate rewards rather than rewards two weeks in the future.

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