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How Do Labels and Vouchers Shape Unconditional Cash Transfers? Experimental Evidence from Georgia

Author

Listed:
  • Miguel Ángel Borrella-Mas

    (Universidad de Navarra)

  • Jaime Millán-Quijano

    (Universidad de Navarra & CEMR)

  • Anastasia Terskaya

    (Universitat de Barcelona & IEB)

Abstract

We implemented a randomized control trial in Georgia to study how labels and food vouchers affect household expenditure among low-income recipients of unconditional cash transfers. Households were randomly assigned to receive only an unconditional cash transfer, a label indicating an amount intended for children’s expenses in addition to the transfer, or a portion of the transfer as a food voucher usable exclusively at designated stores. We find that labelling increases the share of expenditure on children. Meanwhile, food vouchers reduce total consumption, this being likely due to the increased cost associated with shopping at voucher-accepting shops.

Suggested Citation

  • Miguel Ángel Borrella-Mas & Jaime Millán-Quijano & Anastasia Terskaya, 2023. "How Do Labels and Vouchers Shape Unconditional Cash Transfers? Experimental Evidence from Georgia," Working Papers 2023/09, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2023-09
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    File URL: https://ieb.ub.edu/ca/publication/2023-09-how-do-labels-and-vouchers-shape-unconditional-cash-transfers-experimental-evidence-from-georgia/
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    More about this item

    Keywords

    Cash transfers; Labeling effect; Food vouchers; Randomized control trial;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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