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Long-Term Effects of the Targeting the Ultra Poor Program

Author

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  • 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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    Cited by:

    1. Chakrabarti, Anindya S. & Mishra, Abinash & Mohaghegh, Mohsen, 2021. "Targeted interventions: Consumption dynamics and distributional effects," IIMA Working Papers WP 2021-09-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Fiala, Nathan & Rose, Julian & Aryemo, Filder & Peters, Jörg, 2022. "The (very) long-run impacts of cash grants during a crisis," Ruhr Economic Papers 961, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Clare Balboni & Oriana Bandiera & Robin Burgess & Maitreesh Ghatak & Anton Heil, 2023. "Why Do People Stay Poor?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(2), pages 785-844.
    4. Paul,Boban Varghese & Dutta,Puja Vasudeva & Chaudhary,Sarang, 2021. "Assessing the Impact and Cost of Economic Inclusion Programs : A Synthesis of Evidence," Policy Research Working Paper Series 9536, The World Bank.
    5. Chinh Hoang-Duc & Hang Nguyen-Thu & Tuan Nguyen-Anh & Hiep Tran-Duc & Linh Nguyen-Thi-Thuy & Phuong Do-Hoang & Nguyen To-The & Vuong Vu-Tien & Huong Nguyen-Thi-Lan, 2024. "Governmental support and multidimensional poverty alleviation: efficiency assessment in rural areas of Vietnam," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(4), pages 999-1038, December.
    6. Aregawi G Gebremariam & Elisabetta Lodigiani & Giacomo Pasini, 2024. "The Impact of Ethiopian Productive Safety Net Program on Children's Educational Aspirations and Attainments," Journal of African Economies, Centre for the Study of African Economies, vol. 33(3), pages 271-296.
    7. Angelucci, Manuela & Heath, Rachel & Noble, Eva, 2023. "Multifaceted programs targeting women in fragile settings: Evidence from the Democratic Republic of Congo," Journal of Development Economics, Elsevier, vol. 164(C).
    8. Bernardus Van Doornik & Armando Gomes & David Schoenherr & Janis Skrastins, 2024. "Financial Access and Labor Market Outcomes: Evidence from Credit Lotteries," American Economic Review, American Economic Association, vol. 114(6), pages 1854-1881, June.
    9. Wolfgang Stojetz & Piero Ronzani & Tilman Brück & Jeanne Pinay & Marco d'Errico, 2024. "Building Resilience in Conflict Areas: Quasi-experimental Evidence from Borno State in North-east Nigeria," HiCN Working Papers 419, Households in Conflict Network.
    10. Aguirre Unceta, Rafael, 2021. "The economic and social impact of mining-resources exploitation in Zambia," Resources Policy, Elsevier, vol. 74(C).
    11. Rose, Julian & Neubauer, Florian & Ankel-Peters, Jörg, 2024. "Long-term effects of the targeting the ultra-poor program: A reproducibility and replicability assessment of Banerjee et al. (2021)," Ruhr Economic Papers 1107, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    12. Banerjee, Abhijit & Karlan, Dean & Osei, Robert & Trachtman, Hannah & Udry, Christopher, 2022. "Unpacking a multi-faceted program to build sustainable income for the very poor," Journal of Development Economics, Elsevier, vol. 155(C).
    13. Anindya S. Chakrabarti & Abinash Mishra & Mohsen Mohaghegh, 2024. "Inequality and income mobility: the case of targeted and universal interventions in India," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(3), pages 781-807, September.
    14. Fiala, Nathan & Rose, Julian & Ankel-Peters, Jörg & Aryemo, Filder, 2023. "The (very) long-run impacts of cash grants during a crisis," OSF Preprints rdjn9_v1, Center for Open Science.
    15. Kondylis,Florence & Loeser,John Ashton, 2021. "Intervention Size and Persistence," Policy Research Working Paper Series 9769, The World Bank.
    16. Vincent P. Roberdel & Ioulia V. Ossokina & Vladimir A. Karamychev & Theo A. Arentze, 2023. "Energy-efficient homes: effects on poverty, environment and comfort," Tinbergen Institute Discussion Papers 23-082/V, Tinbergen Institute.
    17. Baird, Sarah & McIntosh, Craig & Özler, Berk & Pape, Utz, 2024. "Asset transfers and anti-poverty programs: Experimental evidence from Tanzania," Journal of Development Economics, Elsevier, vol. 166(C).
    18. Elisa Aracil & Elena Maria Diaz & Gonzalo Gómez-Bengoechea & Rosalía Mota & David Roch-Dupré, 2024. "Regional Socioeconomic Assessments with a Genetic Algorithm: An Application on Income Inequality Across Municipalities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 173(2), pages 499-521, June.
    19. Awaworyi Churchill, Sefa & Iqbal, Nasir & Nawaz, Saima & Yew, Siew Ling, 2024. "Unconditional cash transfers, health and savings," Economics & Human Biology, Elsevier, vol. 53(C).
    20. Altındağ, Onur & O’Connell, Stephen D., 2023. "The short-lived effects of unconditional cash transfers to refugees," Journal of Development Economics, Elsevier, vol. 160(C).
    21. Dang, Hai-Anh H. & Deininger, Klaus & Cuong Viet Nguyen, 2024. "Did Program Support for the Poorest Areas Work? Evidence from Rural Vietnam," GLO Discussion Paper Series 1519, Global Labor Organization (GLO).
    22. Vera-Cossio, Diego A. & Hoffmann, Bridget & Pecha, Camilo & Gallego, Jorge & Stampini, Marco & Vargas, David & Medina, María Paula & Álvarez, Esteban, 2023. "Re-thinking Social Protection: From Poverty Alleviation to Building Resilience in Middle-Income Households," IDB Publications (Working Papers) 12925, Inter-American Development Bank.
    23. Bernardus F Nazar Van Doornik & Armando Gomes & David Schoenherr & Janis Skrastins, 2023. "Financial access and labor market outcomes: evidence from credit lotteries," BIS Working Papers 1071, Bank for International Settlements.

    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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