Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279260 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10510
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Building state capacity is uniquely challenging in fragile states. We report results from a randomized evaluation of a major Afghan government initiative to increase capacity by modernizing its payroll. The reform, which required teachers to biometrically register and receive salary payments via mobile money, did little to reduce payments to non-existent "ghost" workers, but significantly reduced delays. The reform also improved educational outcomes and increased formal financial inclusion. The impacts were not immediate – highlighting the importance of long time-horizons – and were largest in urban areas. The results have implications for state-building and are potentially actionable for policymakers.
Subjects: 
mobile money
state-building
corruption
JEL: 
D02
D73
C93
Document Type: 
Working Paper
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