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The Long-Term Impacts of Grants on Poverty: Nine-Year Evidence from Uganda's Youth Opportunities Program

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  • Christopher Blattman
  • Nathan Fiala
  • Sebastian Martinez

Abstract

In 2008, Uganda gave 400 USD per person to thousands of young people to help them start skilled trades, work more, and raise incomes. Four years on, an experimental evaluation found grants raised work by 17 percent and earnings by 38 percent (Blattman, Fiala, Martinez 2014). After nine years, we find these gains have dissipated. Grantees' investment leveled off; controls eventually increased their incomes through business and casual labor; and so both groups converged in employment, earnings, and consumption levels. We see little effect on mortality, fertility, or family health and education. However, grants had lasting impacts on durable asset stocks and skilled work.

Suggested Citation

  • Christopher Blattman & Nathan Fiala & Sebastian Martinez, 2020. "The Long-Term Impacts of Grants on Poverty: Nine-Year Evidence from Uganda's Youth Opportunities Program," American Economic Review: Insights, American Economic Association, vol. 2(3), pages 287-304, September.
    • Handle: RePEc:aea:aerins:v:2:y:2020:i:3:p:287-304
    DOI: 10.1257/aeri.20190224
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    Citations

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    Cited by:

    1. Andersen, Asbjørn G. & Kotsadam, Andreas & Somville, Vincent, 2022. "Material resources and well-being — Evidence from an Ethiopian housing lottery," Journal of Health Economics, Elsevier, vol. 83(C).
    2. Esther Duflo & Pascaline Dupas & Michael Kremer, 2021. "The Impact of Free Secondary Education: Experimental Evidence from Ghana," NBER Working Papers 28937, National Bureau of Economic Research, Inc.
    3. Maria Caridad Araujo & Karen Macours, 2021. "Education, Income and Mobility: Experimental Impacts of Childhood Exposure to Progresa after 20 Years," PSE Working Papers halshs-03364972, HAL.
    4. Fiala, Nathan & Rose, Julian & Aryemo, Filder & Peters, Jörg, 2022. "The (very) long-run impacts of cash grants during a crisis," Ruhr Economic Papers 961, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Yanina Domenella & Julian C. Jamison & Abla Safir & Bilal Zia, 2021. "Can Business Grants Mitigate a Crisis? Evidence from Youth Entrepreneurs in Kenya during COVID-19," Discussion Papers 2110, University of Exeter, Department of Economics.
    6. Cristina Constantinescu & Ana Margarida Fernandes & Arti Grover & Stavros Poupakis & Santiago Reyes, 2022. "Globally Engaged Firms in the Covid-19 Crisis," CESifo Working Paper Series 9711, CESifo.
    7. Johannes Haushofer & Robert Mudida & Jeremy P. Shapiro, 2020. "The Comparative Impact of Cash Transfers and a Psychotherapy Program on Psychological and Economic Well-being," NBER Working Papers 28106, National Bureau of Economic Research, Inc.
    8. Blattman, Christopher & Sheridan, Margaret A. Ph.D. & Jamison, Julian C. & Chaskel, Sebastian, 2022. "Cognitive behavior therapy reduces crime and violence over 10 years: Experimental evidence," SocArXiv q85ux, Center for Open Science.
    9. Blattman, Christopher & Dercon, Stefan & Franklin, Simon, 2022. "Impacts of industrial and entrepreneurial jobs on youth: 5-year experimental evidence on factory job offers and cash grants in Ethiopia," Journal of Development Economics, Elsevier, vol. 156(C).
    10. Giambra, Samuele & McKenzie, David, 2021. "Self-employment and migration," World Development, Elsevier, vol. 141(C).
    11. Cirera,Xavier & Vargas Da Cruz,Marcio Jose & Grover,Arti Goswami & Iacovone,Leonardo & Medvedev,Denis & Pereira Lopez,Mariana De La Paz & Reyes,Santiago, 2021. "Firm Recovery during COVID-19 : Six Stylized Facts," Policy Research Working Paper Series 9810, The World Bank.
    12. Alexander De Juan & Carlo Koos & Miquel Pellicer & Eva Wegner, 2022. "Can reconstruction programmes improve political perceptions in conflict contexts? Evidence from eastern Democratic Republic of the Congo," South African Journal of Economics, Economic Society of South Africa, vol. 90(4), pages 427-455, December.
    13. Kondylis,Florence,Loeser,John Ashton, 2021. "Intervention Size and Persistence," Policy Research Working Paper Series 9769, The World Bank.
    14. Benjamin A. Olken, 2020. "Banerjee, Duflo, Kremer, and the Rise of Modern Development Economics," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(3), pages 853-878, July.
    15. Gazeaud, Jules & Khan, Nausheen & Mvukiyehe, Eric & Sterck, Olivier, 2023. "With or without him? Experimental evidence on cash grants and gender-sensitive trainings in Tunisia," Journal of Development Economics, Elsevier, vol. 165(C).
    16. Simona Omondi & Destaings Nyongesa & Scholastica Odhiambo, 2023. "Impact of Cash Transfers on Poverty Reduction towards Achieving Sustainable Development Goals among Female-Headed Households in Siaya County, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 1052-1060, September.
    17. McGuire, Joel & Kaiser, Caspar & Bach-Mortensen, Anders, 2020. "The impact of cash transfers on subjective well-being and mental health in low- and middle- income countries: A systematic review and meta-analysis," SocArXiv ydr54, Center for Open Science.
    18. Clemens, Michael A., 2022. "Do Cash Transfers Deter Migration?," IZA Policy Papers 191, Institute of Labor Economics (IZA).
    19. Evan Borkum & Paolo Abarcar & Laura Meyer & Matthew Spitzer, "undated". "Jordan Refugee Livelihoods Development Impact Bond Evaluation Framework," Mathematica Policy Research Reports 602dafe521fe4467854dcd45e, Mathematica Policy Research.
    20. Chowdhury, Shyamal & Hasan, Syed & Sharma, Uttam, 2024. "The Role of Trainee Selection in the Effectiveness of Vocational Training: Evidence from a Randomized Controlled Trial in Nepal," IZA Discussion Papers 16705, Institute of Labor Economics (IZA).
    21. Arlen Guarin & Juliana Londoño-Vélez & Christian Posso, 2023. "Reparations as Development? Evidence from Victims of the Colombian Armed Conflict," Borradores de Economia 1236, Banco de la Republica de Colombia.
    22. Altındağ, Onur & O’Connell, Stephen D., 2023. "The short-lived effects of unconditional cash transfers to refugees," Journal of Development Economics, Elsevier, vol. 160(C).
    23. Del Boca, Daniela & Pronzato, Chiara & Sorrenti, Giuseppe, 2021. "Conditional cash transfer programs and household labor supply," European Economic Review, Elsevier, vol. 136(C).

    More about this item

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • 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
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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