Can unconditional cash transfers raise long-term living standards? Evidence from Zambia

Sudhanshu Handa, Luisa Natali, David Seidenfeld, Gelson Tembo and Benjamin Davis

Journal of Development Economics, 2018, vol. 133, issue C, 42-65

Abstract: In Africa, state-sponsored cash transfer programs now reach nearly 50 million people. Do these programs raise long-term living standards? We examine this question using experimental data from two unconditional cash transfer programs implemented by the Zambian Government. We find far-reaching effects of the programs both on food security and consumption as well as on a range of productive outcomes. After three years, household spending is on average 67 percent larger than the value of the transfer received, implying a sizeable multiplier effect, which works through increased non-farm activity and agricultural production.

Keywords: Poverty reduction; Unconditional cash transfers; Zambia (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (43)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:133:y:2018:i:c:p:42-65

DOI: 10.1016/j.jdeveco.2018.01.008

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