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The Role of BISP’s Unconditional Cash Transfers in Alleviating Extreme Poverty in Pakistan: A Quasi-Experimental Analysis for the Period 2011–2019

Author

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  • Shujaat Farooq

    (Quaid-I-Azam University Campus)

  • Durr-e Nayab

    (Quaid-I-Azam University Campus)

Abstract

The current study analyzes the impacts of BISP’s unconditional cash transfers on beneficiary households' well-being through various indicators including consumption and poverty. The analysis is conducted by using the 2019 cross-sectional data and panel data of 5 rounds conducted during the 2011–2019 period. A Quasi-experimental approach is adopted by applying both the regression discontinuity design (RDD) and difference-in-discontinuity techniques for cross-sectional and longitudinal data, respectively. The findings reveal that despite 8-years of the intervention, three-fourths of the beneficiary households are still below the poverty line and little impact is found on the consumption expenditures in general. Overall the unconditional cash transfers remained unsuccessful in eradicating extreme poverty which was one of the major objectives of the program. The analysis suggests that BISP needs to revisit its existing design, shifting towards conditional interventions for sustainably alleviating poverty.

Suggested Citation

  • Shujaat Farooq & Durr-e Nayab, 2023. "The Role of BISP’s Unconditional Cash Transfers in Alleviating Extreme Poverty in Pakistan: A Quasi-Experimental Analysis for the Period 2011–2019," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(2), pages 439-464, April.
    • Handle: RePEc:spr:soinre:v:166:y:2023:i:2:d:10.1007_s11205-023-03071-3
    DOI: 10.1007/s11205-023-03071-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Unconditional cash transfer; Poverty; Regression discontinuity design; Difference-in-difference;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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