Tuesday

Nudge in the School Environment

Nudge in the School Environment



Thaler and Sunstein popularised 'Nudge', the idea that our behaviour can be changed with no cost, simply changing how choices are framed, in order to increase our wellbeing. The Behavioural Insights Team, (also known as the 'Nudge Unit'), has successfully introduced several measures into our society which have increased tax revenue for the government. We all can try to introduce 'nudges' in our own workplaces in order to ensure that customers make the best choice for themselves, and even society as a whole. 

 Has the Nudge Unit been successful?  

      At Jobcentre Plus in Loughton, Essex, a trial was introduced whereby jobseekers were split into two groups. Group A was the control group; they filled in up to 9 forms on arrival and had to wait for 2 weeks to speak to an adviser. Group B experienced a new, different experience where they spoke to an adviser immediately, and set goals for the next 2 weeks. They also discussed if they had met their goals from the previous 2 weeks. The result was that members of Group B were 15-20pc less likely to be on benefits after 13 weeks. It seems that this was due to the introduction of these commitment devices, whereby the unemployed had to adhere to their goals and had a clear strategy. Conversely, Group A participants lacked a clear strategy and were almost alienated by the Jobcentre due to a lack of communication.
      Another interesting policy implementation concerns a Car Tax. Letters from the DVLA alerting drivers who did not pay tax that they had missed the deadline, usually only received an 11pc response. However, the Nudge Unit introduced a trial in December 2011 whereby the letter was accompanied by a phrase along the lines of "Lose your [make of car] or pay your tax". Payments doubled after the introduction of this personalised letter! Moreover, a later trial also included a photograph of the driver's car- this tripled repayments
      Payment of income tax increased by 15pc when residents were alerted that the majority of residents on their street/ town had paid their taxes. It has been estimated that should this policy be implemented nationally, £30 m of extra revenue will be 'generated', due to the reduced costs of tax collection. 
      Usually, people fined in court do not pay their fines. Letters usually only receive a 5pc response. However, another experiment showed that when sent a text message with the offender's name, payments increased by 33pc! Through an increase in payments and a reduction in paper and ink usage, this would also save the government £30 m. 
      The government had been offering subsidised loft insulation to those wishing to save on energy costs. However, few were capitalising on the government's generosity. The Nudge Unit realised that the reason for the poor response as due to the fact that residents' lofts were cluttered and they did not have the time to declutter them. Thus, a trial offered subsidised loft clearance to those agreeing to insulate their lofts. Despite the fact that this scheme was more expensive for residents, more people insulated their lofts- indeed, the number increased by a factor of 5
      Nudge theory can also be applied to organ donation. In Germany, where there is an 'opt in' system for organ donation, only 12pc of the adult population are donors. Conversely, in Austria, a country which is demographically and economically similar to Germany, 99pc of the population are donors- however, Austria has an 'opt out' system in place. Indeed, changing the default can be seen to increase participation, perhaps due to the fact that donors feel that the default is the 'right' thing to do or what the rest of society is doing. Although an 'opt out' system may not be politically palpable at this point in time, there are other, more subtle and gentle, ways in which organ donation can be increased. The Nudge Unit conducted a trial whereby different messages were introduced for one month to people renewing their car tax online. The message which increased the number of organ donors by 100 000 relative to the control posed a rhetorical question: "If you needed an organ transplant, would you have one? If so, please help others."

Nudge in the School Environment

- Sixth Form Open Evening

We can all make an effort to introduce nudges in our working lives, ensuring that customers make the best choices for themselves or for society. These Nudges can be applied to the school environment. For example, we could introduce ‘opt out’ systems in schools rather than ‘opt in’ systems, effectively changing the default option and so ensuring greater participation. I have already helped to introduce this at school during the Sixth Form Open Evening. Whereas traditionally students volunteer to help out at the evenings, last year all students were told they should attend and those who were unable or unwilling to attend needed to provide a reason as to why they could not attend. Thus, on our last open evening the number of Sixth Form helpers doubled. It could be strongly argued that this was because students felt guilty asking not to attend and disliked the confrontation. This ‘opt out’ system can also be applied to other areas of school life, such as extracurricular sporting activities in order to encourage Sixth Form students to exercise more regularly, as Physical Education is removed from the timetable upon entering Year 12.

- Paying to attend school

An interesting way in which some schools have implemented Nudge theory into school lives is by paying children to attend school. A couple of poorly performing inner city schools with poor attendance have offered to pay their students at the end of Year 13 according to the number of days they attended the school since Year 7 and only paying them if their attendance is above a certain threshold. The golden rule of Economics is that ‘People respond to incentives’ and, indeed, the students at these schools have responded to the incentives. Attendance has increased three fold after the implementation of the measure at one such school, as the students value the money that they receive from attending more than they value the time off from school. It is also interesting to note that the schools pay their students at the end of their 7 year journey, not at the end of a week or a month. This is probably to ensure that students maintain their attendance because after, say, a week they may feel that they do not need to go to school the next couple of weeks because they have gained £x.

- Posters

A further way in which schools can be improved is through the use of posters. For example, in a Bedfordshire hospital in 2011 posters were displayed around the waiting room highlighting that ‘y% of patients attended their appointments’. This further decreased the number of cancellations and non-attendances. A similar method could be applied in classrooms with regard to homework. Students would feel that they should maintain the standard of the class and so hand in their homework on time.

Deadlines

Furthermore, another local Sixth Form college has introduced a messaging service where teachers alert their students of impending deadlines using a school mobile phone. This would remind students of deadlines in the future, ensuring that they do not miss them. This could be broadened with larger schools setting up a page on the school website where each student has an online personalised timetable which is connected to the class teacher’s. Teachers could set homework and deadlines on their own timetables and this could automatically appear on students’ individual timetables. This would ensure that all students would know what homework they need to do and when the deadline is and so would reduce the frantic “Did we have homework?” panic two minutes before the said history essay is due in. Thus, it would increase productivity in schools as it should increase the number of students completing their work and leave students with more time to do extra work or relax ‘two minutes before’ the lesson. This scheme would also save money because, although the school would need to buy the computer software, money would be saved in the long run as the school would not be purchasing planners and organisers. Therefore, this would ensure that more schools have more money to spend on new textbooks, ensuring that each student has a textbook for themselves in each subject that they are taking, for example. Thus, students would have a greater number of resources to study from, thus increasing their knowledge and thus ‘output’, if this is measured by knowledge/ exam results, and so productivity.

- Your Nudges

These are just some of the ways in which Nudge theory has been implemented into school lives. Comment below with your ideas on how Nudge theory has been/ can be used in your place of work- I'd be interested in your ideas! 

References
http://www.theguardian.com/politics/2013/may/02/nudge-unit-has-it-worked
Image: http://i.cbc.ca/1.3004117.1426907026!/fileImage/httpImage/image.jpg_gen/derivatives/16x9_460/nudge-orange.jpg