Workfare, wellbeing and consumption: Evidence from a field experiment with Kenya’s urban poor
Syon Bhanot,
Jiyoung Han and
Chaning Jang
Journal of Economic Behavior & Organization, 2018, vol. 149, issue C, 372-388
Abstract:
Restrictions like work requirements and constraints on voucher transfers are often used in social welfare systems, but little empirical evidence exists on their impact on wellbeing. We conducted a 10-day randomized experiment with 432 individuals living below the poverty line in the Kawangware settlement of Nairobi, Kenya, testing two elements of social welfare design: workfare versus welfare and restricted versus unrestricted vouchers. Participants were randomly assigned to a “Work” condition, involving daily work for unrestricted vouchers, or one of two “Wait” conditions, involving daily waiting for vouchers that were either unrestricted or partially restricted to staple foods. We find that working improved psychological wellbeing relative to waiting, suggesting that the means of implementing welfare programs may have important effects on individuals beyond the impact of monetary benefit alone. Furthermore, although the restrictions were inframarginal, partially restricted vouchers crowded-in spending on staple foods, suggesting the existence of a “flypaper effect” in spending from restricted vouchers.
Keywords: Workfare; Wellbeing; Consumption decisions; Mental accounting; Flypaper effect (search for similar items in EconPapers)
JEL-codes: C9 D1 H3 I3 J2 O1 O2 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268118300076
Full text for ScienceDirect subscribers only
Related works:
Working Paper: Workfare, wellbeing and consumption: Evidence from a field experiment with Kenya's urban poor (2018) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:149:y:2018:i:c:p:372-388
DOI: 10.1016/j.jebo.2018.01.007
Access Statistics for this article
Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.
More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().