The impact of shock-responsive social cash transfers: Evidence from an aggregate shock in Kenya

Christoph Strupat, Emmanuel Nshakira Rukundo and Arndt Reichert

No 1073, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: This study examines the effects of a nationwide shock-responsive social cash transfer scheme during an aggregate shock, with a focus on highly risk susceptible informal sector households in Kenya. Leveraging primary in-person survey data in a doubly robust difference-in-differences framework, we find that households receiving shock-responsive cash transfers were less likely to encounter income loss, poverty, and food scarcity compared to households not receiving them. The scheme also reduced the likelihood of engaging in costly risk coping such as selling productive assets. When comparing different pillars of the scheme with varying degrees of shock-responsiveness, we observe that the impacts were statistically significant only when payment cycles were pooled and the transfers were vertically scaled. The study adds to the global policy discussion on developing effective shock-responsive interventions, underscoring the merits of (adapted) social cash transfers during crises.

Keywords: Cash transfers; shock-responsiveness; COVID-19; Kenya (search for similar items in EconPapers)
JEL-codes: I13 I15 I18 J01 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-dev
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:295227

DOI: 10.4419/96973246

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