IDEAS home Printed from https://ideas.repec.org/p/unm/unumer/2018004.html
   My bibliography  Save this paper

The relevance of local structures for economic multiplier effects of social pensions in Uganda

Author

Listed:
  • Kuss, Maria Klara

    (UNU-MERIT, Maastricht University)

  • Gassmann, Franziska

    (UNU-MERIT, Maastricht University)

  • Mugumya, Firminus

    (Makerere University, Kampala, Uganda)

Abstract

This paper provides insights into the differences in economic multiplier effects of Social Cash Transfers in unequal structural settings. Using a qualitative approach and the case of Uganda's Senior Citizens Grant (SCG), the paper confirms that there are considerable differences in the scope of economic multipliers between structurally integrated and remote areas. Integrated communities are in a better position to access the secondary benefits of the SCG since they are better able to respond to the increased demand by recipients with higher value and more lucrative investments. Moreover, community members in integrated areas are also more likely to benefit from improvements of already existing infrastructures and services than community members in remote areas where at times growth-enhancing structures and services remain entirely absent. The paper concludes that the expansion of SCTs in low-income countries should be accompanied by measures that reduce pre-existing structural inequalities across areas.

Suggested Citation

  • Kuss, Maria Klara & Gassmann, Franziska & Mugumya, Firminus, 2018. "The relevance of local structures for economic multiplier effects of social pensions in Uganda," MERIT Working Papers 2018-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2018004
    as

    Download full text from publisher

    File URL: https://unu-merit.nl/publications/wppdf/2018/wp2018-004.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mateusz J. Filipski & J. Edward Taylor & Karen E. Thome & Benjamin Davis, 2015. "Effects of treatment beyond the treated: a general equilibrium impact evaluation of Lesotho's cash grants program," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 227-243, March.
    2. repec:pri:cheawb:case_ardington_hosegood_nber_w13442_oct07 is not listed on IDEAS
    3. Barrientos, Armando, 2012. "Social Transfers and Growth: What Do We Know? What Do We Need to Find Out?," World Development, Elsevier, vol. 40(1), pages 11-20.
    4. repec:pri:rpdevs:case_ardington_hosegood_nber_w13442_oct07 is not listed on IDEAS
    5. Victoria Hosegood & Anne Case & Cally Ardington, 2009. "Labor Supply Responses to Large Social Transfers: Longitudinal Evidence from South Africa," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 22-48, January.
    6. Karen Thome & Mateusz Filipski & Justin Kagin & J. Edward Taylor & Benjamin Davis, 2013. "Agricultural Spillover Effects of Cash Transfers: What Does LEWIE Have to Say?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1338-1344.
    7. Davis, Benjamin & Handa, Sudhanshu & Hypher, Nicola & Winder Rossi, Natalia & Winters, Paul & Yablon (ed.), 2016. "From Evidence to Action: The Story of Cash Transfers and Impact Evaluation in Sub Saharan Africa," OUP Catalogue, Oxford University Press, number 9780198769446.
    8. Ziesemer, Thomas, 2018. "The serendipity theorem for an endogenous open economy growth model," MERIT Working Papers 2018-001, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Stephen Devereux, 2002. "Can Social Safety Nets Reduce Chronic Poverty?," Development Policy Review, Overseas Development Institute, vol. 20(5), pages 657-675, November.
    10. Elizabeth Kasekende & John P. Dunne, 2016. "Financial Innovation and Money Demand in Sub-Saharan Africa," Working Papers 59, Economic Research Southern Africa.
    11. repec:pri:cheawb:case_ardington_hosegood_nber_w13442_oct07.pdf is not listed on IDEAS
    12. Posel, Dorrit & Fairburn, James A. & Lund, Frances, 2006. "Labour migration and households: A reconsideration of the effects of the social pension on labour supply in South Africa," Economic Modelling, Elsevier, vol. 23(5), pages 836-853, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Klara Kuss & Franziska Gassmann & Firminus Mugumya, 2022. "How Inclusive are the Local Economic Impacts of Social Protection in Uganda?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2156-2178, October.
    2. Fisher, Eleanor & Attah, Ramlatu & Barca, Valentina & O'Brien, Clare & Brook, Simon & Holland, Jeremy & Kardan, Andrew & Pavanello, Sara & Pozarny, Pamela, 2017. "The Livelihood Impacts of Cash Transfers in Sub-Saharan Africa: Beneficiary Perspectives from Six Countries," World Development, Elsevier, vol. 99(C), pages 299-319.
    3. Victoria Hosegood & Anne Case & Cally Ardington, 2009. "Labor Supply Responses to Large Social Transfers: Longitudinal Evidence from South Africa," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 22-48, January.
    4. Sinyolo, Sikhulumile & Mudhara, Maxwell & Wale, Edilegnaw, 2016. "To what extent does dependence on social grants affect smallholder farmers’ incentives to farm? Evidence from KwaZulu-Natal, South Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(2), pages 1-12.
    5. Gilliland, Ted E. & Sanchirico, James N. & Taylor, J. Edward, 2018. "Environmental Impacts of Cash Transfer Programs: Implications for the Welfare of Poor Communities in Developing Countries," 2018 Annual Meeting, August 5-7, Washington, D.C. 274244, Agricultural and Applied Economics Association.
    6. Erofili Grapsa & Dorrit Posel, 2016. "Sequencing the real time of the elderly: Evidence from South Africa," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 35(25), pages 711-744.
    7. Harold Alderman & Ruslan Yemtsov, 2014. "How Can Safety Nets Contribute to Economic Growth?," The World Bank Economic Review, World Bank, vol. 28(1), pages 1-20.
    8. John Hoddinott & Tseday J. Mekasha, 2020. "Social Protection, Household Size, and Its Determinants: Evidence from Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 56(10), pages 1818-1837, October.
    9. von Fintel, Dieter & Pienaar, Louw, 2016. "Small-Scale Farming and Food Security: The Enabling Role of Cash Transfers in South Africa's Former Homelands," IZA Discussion Papers 10377, Institute of Labor Economics (IZA).
    10. Juan M. Villa, 2016. "Social Transfers and Growth: Evidence from Luminosity Data," Economic Development and Cultural Change, University of Chicago Press, vol. 65(1), pages 39-61.
    11. Irineu Evangelista de Carvalho Filho, 2012. "Household Income as a Determinant of Child Labor and School Enrollment in Brazil: Evidence from a Social Security Reform," Economic Development and Cultural Change, University of Chicago Press, vol. 60(2), pages 399-435.
    12. Solomon Asfaw & Silvio Daidone & Benjamin Davis & Josh Dewbre & Alessandro Romeo & Paul Winters & Katia Covarrubias & Habiba Djebbari, 2012. "Analytical Framework for Evaluating the Productive Impact of Cash Transfer Programmes on Household Behaviour – Methodological Guidelines for the From Protection to Production Project," Working Papers 101, International Policy Centre for Inclusive Growth.
    13. Mideros Andrés & O’Donoghue Cathal, 2015. "The Effect of Unconditional Cash Transfers on Adult Labour Supply: A Unitary Discrete Choice Model for the Case of Ecuador," Basic Income Studies, De Gruyter, vol. 10(2), pages 225-255, December.
    14. Kuss, Maria Klara & Llewellin, Patrick & Gassmann, Franziska, 2018. "The economic impacts of a social pension on recipient households with unequal access to markets in Uganda," MERIT Working Papers 2018-071, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Hall Katharine & Posel Dorrit, 2019. "Fragmenting the Family? The Complexity of Household Migration Strategies in Post-apartheid South Africa," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(2), pages 22-48, August.
    16. Amar Hamoudi & Duncan Thomas, 2014. "Endogenous Co-residence and Program Incidence: South Africa's Old Age Pension," NBER Working Papers 19929, National Bureau of Economic Research, Inc.
    17. Kaushal, Neeraj, 2014. "How Public Pension affects Elderly Labor Supply and Well-being: Evidence from India," World Development, Elsevier, vol. 56(C), pages 214-225.
    18. Martine Mariotti & Juergen Meinecke, 2009. "Nonparametric Bounds on Returns to Education in South Africa: Overcoming Ability and Selection Bias," ANU Working Papers in Economics and Econometrics 2009-510, Australian National University, College of Business and Economics, School of Economics.
    19. Miguel Angel Borrella-Mas & Mariano Bosch & Marcello Sartarelli, 2019. "Heterogeneous Effect of a Non-contributory Pension. Evidence from Bolivia," Documentos de Trabajo del ICAE 2019-35, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    20. Inés Berniell & Dolores de la Mata & Matilde Pinto Machado, 2020. "The Impact of a Permanent Income Shock on the Situation of Women in the Household: The Case of a Pension Reform in Argentina," Economic Development and Cultural Change, University of Chicago Press, vol. 68(4), pages 1295-1343.

    More about this item

    Keywords

    Social pension; cash transfer; economic multiplier; Sub-Sahara Africa; Uganda;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unm:unumer:2018004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ad Notten (email available below). General contact details of provider: https://edirc.repec.org/data/meritnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.