Pay Me Later: Savings Constraints and the Demand for Deferred Payments

We study a simple savings scheme that allows workers to defer receipt of part their wages for three months at zero interest. The significantly increases during the deferral period, leading higher postdisbursement spending on lumpy goods. Two years later, after two additional rounds scheme, we find treated have made permanent improvements homes. popularity implies lack good alternative options. results follow-up experiment suggest demand is partly due its ability address self-control issues. (JEL D91, G51, J31, O12, O13)