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Do Social Protection Transfers Reduce Poverty and Vulnerability to Poverty in Pakistan? Household Level Evidence from Punjab

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  • Muhammad Masood Azeem
  • Amin W. Mugera
  • Steven Schilizzi

Abstract

Empirical studies in different developing countries have investigated the impact of social protection (SP) on ex-post poverty; however, few studies analysed the impact of SP on ex-ante vulnerability to poverty (VtP). This paper contributes to the literature by evaluating the impact of SP on vulnerability to poverty (VtP) and poverty rates among households in the Punjab province of Pakistan. A hierarchical modelling approach is used to analyse the Multiple Indicator Cluster Survey (MICS-2011) data of about 90,000 households. Matching methods and simultaneous endogenous switching regression are used to control for potential selection bias and estimate average treatment effects. Our results show that SP has a positive impact in reducing household poverty and VtP, but this impact is mainly driven by a short-term flood relief cash transfer programme, pension of government employees and households’ regular purchase from utility store network.

Suggested Citation

  • Muhammad Masood Azeem & Amin W. Mugera & Steven Schilizzi, 2019. "Do Social Protection Transfers Reduce Poverty and Vulnerability to Poverty in Pakistan? Household Level Evidence from Punjab," Journal of Development Studies, Taylor & Francis Journals, vol. 55(8), pages 1757-1783, August.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:8:p:1757-1783
    DOI: 10.1080/00220388.2018.1448068
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    Cited by:

    1. Sunil Khosla & Pradyot Ranjan Jena, 2022. "Analyzing vulnerability to poverty and assessing the role of universal public works and food security programs to reduce it: Evidence from an eastern Indian state," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 2296-2316, November.
    2. Liaqat Ali & Muhammad Kamran Naqi Khan & Habib Ahmad, 2020. "Financial Fragility of Pakistani Household," Journal of Family and Economic Issues, Springer, vol. 41(3), pages 572-590, September.
    3. Hare Krisna Kundo & Martin Brueckner & Rochelle Spencer & John Davis, 2021. "Mainstreaming climate adaptation into social protection: The issues yet to be addressed," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(6), pages 953-974, August.
    4. Jena, Pradyot Ranjan & Khosla, Sunil & Rahut, Dil Bahadur, 2024. "Can farmers with higher capabilities fend off falling into future Poverty? Empirical evidence from a tribal region in eastern India," World Development Perspectives, Elsevier, vol. 33(C).
    5. Carla Canelas & Miguel Niño-Zarazúa, 2022. "Informality and Pension Reforms in Bolivia: The Case of Renta Dignidad," Journal of Development Studies, Taylor & Francis Journals, vol. 58(7), pages 1436-1458, July.
    6. Bo Yang & Xiangnan Wang & Tong Wu & Weihua Deng, 2023. "Reducing farmers' poverty vulnerability in China: The role of digital financial inclusion," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1445-1480, August.
    7. Zaira Najam & Susan Olivia, 2021. "Does the impact of cash transfers differ across poverty measures? Evidence from Pakistan," Working Papers in Economics 21/09, University of Waikato.
    8. Khosla, Sunil & Jena, Pradyot Ranjan & Rahut, Dil Bahadur, 2023. "Can rural livelihood programs enhance capabilities and reduce vulnerability to poverty? Evidence from a tribal region of eastern India," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 85-98.
    9. Jingjing Zhou & Yaoyu Zhang & Yong Sha & Jianfang Zhou & Hang Ren & Xin Shen & Hui Xu, 2022. "The Effect of the “Triple-Layer Medical Security” Policy on the Vulnerability as Expected Poverty of Rural Households: Evidence from Yunnan Province, China," IJERPH, MDPI, vol. 19(19), pages 1-22, October.
    10. Saeed, Muhammad Kashif & Hayat, Muhammad Azmat, 2020. "The Impact of Social Cash Transfers on Poverty in Pakistan-A Case Study of Benazir Income Support Programme," MPRA Paper 99805, University Library of Munich, Germany.
    11. Shasha Zhang & Qian Liu & Xungang Zheng & Juan Sun, 2023. "Internet Use and the Poverty Vulnerability of Rural Households: From the Perspective of Risk Response," Sustainability, MDPI, vol. 15(2), pages 1-17, January.

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