The targeting effectiveness of social transfers
Stephen Devereux,
Edoardo Masset,
Rachel Sabates-Wheeler,
Michael Samson,
Althea-Maria Rivas and
Dolf te Lintelo
Journal of Development Effectiveness, 2017, vol. 9, issue 2, 162-211
Abstract:
Many methodologies exist for dividing a population into those who are classified as eligible for social transfers and those who are ineligible. Popular targeting mechanisms include means tests, proxy means tests, categorical, geographic, community-based and self-selection. This paper reviews empirical evidence from a range of social protection programmes on the accuracy of these mechanisms, in terms of minimising four targeting errors: inclusion and exclusion, by eligibility and by poverty. This paper also reviews available evidence on the various costs associated with targeting, not only administrative but also private, social, psycho-social, incentive-based and political costs. Comparisons are difficult, but all mechanisms generate targeting errors and costs. Given the inevitability of trade-offs, there is no ‘best’ mechanism for targeting social transfers. The key determinant of relative accuracy and cost-effectiveness in each case is how well the targeting mechanism is designed and implemented.
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:taf:jdevef:v:9:y:2017:i:2:p:162-211
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DOI: 10.1080/19439342.2017.1305981
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