Economics at your fingertips  

Causal pathways of the productive impacts of cash transfers: Experimental evidence from Lesotho

Ervin Prifti, Silvio Daidone () and Benjamin Davis

World Development, 2019, vol. 115, issue C, 258-268

Abstract: This paper has the double aim to study whether unconditional cash transfers have an impact on farm production and to look into the causal mechanisms through which government transfers produce productive impacts. We use mediation analysis to identify the total effect of transfers on farm production and to isolate the influence of the labour channel from other transmission channels. In particular, we analyze whether changes in farm production are caused by transfer-induced changes in the use of farm labour – either by reallocating family labour between off- and on-farm work or by changes in the demand for hired labour – or if other transmission channels are at work. We find that cash transfers have a sizable impact on farm production but they do not lead to increased use of family or hired labour on the farm, which implies that the productive impacts of cash transfers flow through other channels, different from the labour one.

Keywords: Cash transfers; Agricultural production; Mediation analysis; RCT (search for similar items in EconPapers)
JEL-codes: C21 Q12 J22 H24 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
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:

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2020-01-18
Handle: RePEc:eee:wdevel:v:115:y:2019:i:c:p:258-268