Conversations with Tyler Esther Duflo on Management, Growth, and Research in Action
Dec 18, 2019
Esther Duflo, a Nobel Prize-winning economist and co-founder of J-PAL, shares her transformative journey from observing economic practices in the Soviet Union to advising governments on poverty reduction. She discusses how mentorship amplifies cash transfers, the dangers of fixating solely on growth rates, and the unique child-rearing practices in France. Duflo also reflects on geographic mobility decline in the U.S. and what rock climbing teaches about empirical economics, while intertwining her daily life experiences with music.
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Effective Poverty Intervention
- Cash transfers combined with coaching yield exceptionally high returns in poverty reduction.
- Coaching helps recipients avoid early liquidation of assets and teaches essential business skills.
Microcredit Use
- Microcredit borrowers often use loans for consumption or durable goods, not business investments.
- This explains lower-than-expected growth despite high interest rates and repayment.
Management Style
- Esther Duflo's management style is not micromanagement.
- She gives a clear vision, then grants ownership to her team, fostering effort and creativity.
