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Welfare Effects of Social Cash Transfers in Chipata and Kazungula Districts of Zambia

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  • Gelson Tembo
  • Bernadette Chimai
  • Nicholas Freeland
  • Brian P. Mulenga

Abstract

This study uses the odds-weighted regression approach and data from two spatially separated social cash transfer (SCT) programs in Zambia to determine the impact of cash transfers on household welfare. The same analytical framework was also applied on sub-samples of poor and relatively less poor households, where the wealth ranking was done using an asset-based index derived through principal components analysis. The results confirm positive SCT effects on per capita consumption expenditure and that the sizes and relative significance of these effects vary by program design and by the household's asset wealth. The effects were especially unambiguously positive and significant for non-food consumption. While the impact on food expenditure was positive and significant in the rural Kazungula SCT program, the impact on non-food per capita consumption expenditure was three times greater. In the urban scheme in Chipata, program impacts were only significant on non-food expenditure. Future intervention designs need to take into account such heterogeneity in level and shape of potential impacts if they are to be effective.

Suggested Citation

  • Gelson Tembo & Bernadette Chimai & Nicholas Freeland & Brian P. Mulenga, 2014. "Welfare Effects of Social Cash Transfers in Chipata and Kazungula Districts of Zambia," Business and Economic Research, Macrothink Institute, vol. 4(1), pages 289-298, June.
    • Handle: RePEc:mth:ber888:v:4:y:2014:i:1:p:289-298
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    References listed on IDEAS

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    5. Gelson Tembo & Nicholas Freeland & Bernadette Chimai & Esther Sch¨¹ring, 2014. "Social Cash Transfers and Household Welfare: Evidence from Zambia's Oldest Scheme," Applied Economics and Finance, Redfame publishing, vol. 1(1), pages 13-26, May.
    6. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
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    Cited by:

    1. Pedro Arruda & Laura Dubois, 2018. "A brief history of Zambia's social cash transfer programme," Policy Research Brief 62, International Policy Centre for Inclusive Growth.
    2. Rafael Aguirre Unceta, 2021. "Mining revenue, fiscal space and social policies: the case of Zambia," Working Papers 191, International Policy Centre for Inclusive Growth.

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    More about this item

    Keywords

    Social cash transfers; Consumption expenditure; Impact; Chipata; Kazungula; Zambia;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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