More Is Better : Evaluating the Impact of a Variation in Cash Assistance on the Reintegration Outcomesof Returning Afghan Refugees

This paper studies the effect of a change in the amount of cash assistance provided to Afghanrefugees returning from Pakistan on household outcomes post-return. Using a regression discontinuity design, itmeasures the impact of a large exogenous change in cash assistance amounts on post-return outcomes in aquasi-experimental setting. Administrative data and post-return monitoring data suggest that more than 16 monthsafter their return, returnees who received a larger cash allowance of $350 per returnee—equivalent to 2.5 times theaverage annual pre-return annual income—were better off than those who received a smaller cash allowance of $150.Recipients of the $350 cash assistance were more likely to invest in durable assets, such as a house (17 percentagepoint difference); recipients of the $150 cash allowance were more likely to use the assistance for immediate foodconsumption needs (40 percentage point difference). Households that received $350 per returnee weresignificantly more likely to have been issued legal documentation for their household members. In line with theliterature on cash assistance, the change in cash assistance had no effect on post-return employment outcomes. Thefindings provide new evidence on the effects of unconditional cash transfers on refugee reintegration andshow that larger cash transfer programs can have a large and long-term impact following refugees’ return.