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Incentive and crowding out effects of food assistance: evidence from randomized evaluation of food-for-training project in Southern Sudan

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  • Sulaiman, Munshi

Abstract

Food assistance is one of the most common forms of safety net programs in postconflict situations. Besides the humanitarian and promotional roles, there are widespread scepticisms of food assistance regarding its possible influence on disincentive to work and on crowding out of private transfers. While there is a relatively large amount of empirical research on social protection in stable context, it is less researched in post-conflict situations. Based on randomized evaluation of a food-for-training program implemented in Southern Sudan, this paper estimates these effects. We observe a significant negative impact (about 13%) on per capita household income. However, there is no effect on the hours of work or the type of the economic activities of the adult members. The decline in income mostly happened through a reduction in child labor. There is also a positive effect on school enrolment for girls (about 10 percentage points) and an improvement in their housing status. We also do not find any indication of crowding out of private transfers for the participants. This is most likely due to the extent of private transfers being very low to begin with. However, there is a small but significant impact of the transfers given out by the participants.

Suggested Citation

  • Sulaiman, Munshi, 2010. "Incentive and crowding out effects of food assistance: evidence from randomized evaluation of food-for-training project in Southern Sudan," LSE Research Online Documents on Economics 58095, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:58095
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    References listed on IDEAS

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    1. Getaw Tadesse & Gerald Shively, 2009. "Food Aid, Food Prices, and Producer Disincentives in Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 942-955.
    2. Pedro Albarran & Orazio P. Attanasio, 2002. "Do Public Transfers Crowd Out Private Transfers?: Evidence from a Randomized Experiment in Mexico," WIDER Working Paper Series DP2002-06, World Institute for Development Economic Research (UNU-WIDER).
    3. Morduch, Jonathan, 1999. "Between the State and the Market: Can Informal Insurance Patch the Safety Net?," The World Bank Research Observer, World Bank, vol. 14(2), pages 187-207, August.
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    Cited by:

    1. Sandra García & Jorge Cuartas, 2017. "With a Little Help from my Friends: the Multiplier Effect of Public Subsidies through Private Support," Documentos de trabajo 17647, Escuela de Gobierno - Universidad de los Andes.
    2. Ruerd Ruben, 2012. "Dimensionner l'aide au développement : ce que nous enseigne l'évaluation. Dimensioning Development Aid: Some Lessons from Evaluation," Revue d’économie du développement, De Boeck Université, vol. 20(4), pages 95-123.

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    More about this item

    Keywords

    food assistance; incentive; crowding-out; Southern Sudan;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

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