Self-efficacy and human capital investments among young women in Ghana
Programs aimed at fostering development typically target external constraints, such as limited access to education, credit, or social protection. However, engagement with these programs often remains low. Internal psychological constraints may hinder individuals' ability to take advantage of these programs and represent a barrier to investment decisions. This paper examines the impact of a pre-registered randomized testimonial campaign designed to boost self-efficacy---beliefs about one's ability to succeed---among young women in Ghana who registered for a free training program. The campaign significantly raised self-efficacy, but it did not affect overall take-up rate. Instead, it altered the composition of women who began the training. Among those who started, the campaign increased training performance and completion rates. Consistent with a model of behavioral investment traps, effects were concentrated among women with intermediate education levels and initially lower self-efficacy. These results suggest that addressing both internal and external constraints can enhance human capital investments.