Do Financial Literacy Training and Clarifying Pay Calculations Reduce Abuse at Work?

Understanding the link between effort and pay is important for workers. Yet, in many parts of the world, women lack critical financial literacy skills and have employers who do not clearly communicate compensation schemes. Using randomized controlled trials, we first examined the effects of a training program to improve financial literacy among female workers in apparel factories in India and Bangladesh (baselineN= 1,085). Training increased workers' financial planning through the use of a budget and utilization of banking systems, both of which contributed to increased savings. We next examined the effects of a management intervention in factories in Myanmar (baselineN= 429) and found improvements among the predominantly female workers in perceived pay clarity. Pay clarity, in turn, was associated with lower verbal abuse in study factories. Results indicate that both financial literacy and pay clarity are important in shaping female workers' experiences and vulnerability to financial exploitation.