What does Esther Duflo mean by the "economist as plumber" approach?

This concept refers to a focus on the actual mechanics of how policies work on the ground rather than just relying on abstract economic theories. Duflo believes that economists should act like plumbers by getting into the "pipes" of a system to see which specific parts are broken. Instead of trying to solve global poverty with one "silver bullet," this approach involves asking small, precise questions—such as how to increase vaccination rates—and using randomized controlled trials to find reliable, practical solutions.

How did a bag of lentils significantly increase vaccination rates in India?

In a study in Rajasthan, researchers found that low immunization rates weren't caused by a lack of interest in health, but by the high "cost" of travel and time for parents. By providing a small, immediate incentive—a one-kilogram bag of lentils for each visit—the researchers were able to nudge parents to overcome these daily hurdles. This small intervention caused vaccination rates to jump from six percent to thirty-nine percent, and actually lowered the overall cost per immunized child because the fixed costs of the clinics were spread across a much larger group of people.

What did Duflo’s research reveal about how money is spent within a household?

Duflo’s work challenged the idea that a family acts as a single unit with shared goals. In a study of South African pensions, she discovered that when grandmothers received pension money, the health and nutrition of granddaughters improved significantly. However, when grandfathers received the same pension, there was no measurable improvement in the children's health. This evidence suggests that women are more likely to prioritize the well-being of the next generation, leading many countries to direct social assistance payments specifically to mothers.

How are randomized controlled trials (RCTs) used in economic research?

Inspired by clinical trials in medicine, RCTs involve taking a social program and testing it in the real world with two groups: a treatment group that receives the intervention and a control group that does not. Participants are randomly assigned to these groups to ensure that any differences in outcomes are caused by the program itself rather than outside factors. This method allows economists to identify exactly which "levers of action"—like deworming pills or school textbooks—are the most effective and worth scaling up globally.

How Esther Duflo Changed Economics and Won a Nobel Prize

21 min

Big theories often fail to solve poverty. Discover how Esther Duflo uses small-scale trials to find what works and why she views herself as a plumber.

How Esther Duflo Changed Economics and Won a Nobel Prize

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"Perfect balance between learning and entertainment. Finished ‘Thinking, Fast and Slow’ on my commute this week."

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"Reading used to feel like a chore. Now it’s just part of my lifestyle."

@Erin, Investment Banking Associate , NYC

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"Feels effortless compared to reading. I’ve finished 6 books this month already."

@djmikemoore

"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."

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"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."

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@Jaded_Falcon

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@OojasSalunke

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