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Long-Term Effects of the Targeting the Ultra Poor Program

Author

Listed:
  • Abhijit Banerjee
  • Esther Duflo
  • Garima Sharma

Abstract

This paper studies the long-run effects of a "big-push" program providing a large asset transfer to the poorest Indian households. In a randomized controlled trial that follows these households over ten years, we find positive effects on consumption (0.6 SD), food security (0.1 SD), income (0.3 SD), and health (0.2 SD). These effects grow for the first seven years following the transfer and persist until year ten. One main channel for persistence is that treated households take better advantage of opportunities to diversify into more lucrative wage employment, especially through migration.

Suggested Citation

  • Abhijit Banerjee & Esther Duflo & Garima Sharma, 2021. "Long-Term Effects of the Targeting the Ultra Poor Program," American Economic Review: Insights, American Economic Association, vol. 3(4), pages 471-486, December.
  • Handle: RePEc:aea:aerins:v:3:y:2021:i:4:p:471-86
    DOI: 10.1257/aeri.20200667
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    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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