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The Fading Treatment Effects of a Multifaceted Asset-Transfer Program in Ethiopia

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  • Nathan Barker
  • Dean Karlan
  • Christopher Udry
  • Kelsey Wright

Abstract

We study the long-run effects of a big-push "graduation" program in Ethiopia in which very poor households received a one-time transfer of productive assets (mainly livestock), technical training, and access to savings accounts. After seven years, treatment effects on wealth and consumption remain economically meaningful but dissipated relative to the two- and three-year results. Treatment effects on other outcomes attenuated further. Based on absolute well-being (e.g., food security) not dropping, we argue that the treatment effect dissipation is driven primarily by improved living standards for control households rather than losses of the previously accrued benefits for the treatment households.

Suggested Citation

  • Nathan Barker & Dean Karlan & Christopher Udry & Kelsey Wright, 2024. "The Fading Treatment Effects of a Multifaceted Asset-Transfer Program in Ethiopia," American Economic Review: Insights, American Economic Association, vol. 6(2), pages 277-294, June.
    • Handle: RePEc:aea:aerins:v:6:y:2024:i:2:p:277-94
    DOI: 10.1257/aeri.20230156
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    References listed on IDEAS

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    1. Subramanian, Shankar & Deaton, Angus, 1996. "The Demand for Food and Calories," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 133-162, February.
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    Cited by:

    1. Hirvonen, Kalle & Leight, Jessica & Gilligan, Daniel O. & Mesfin, Hiwot Mekonnen & Mulford, Michael & Tesfaye, Haleluya, 2025. "The impact of a nutrition-sensitive graduation model program on child nutrition: Experimental evidence from Ethiopia," GSSP working papers 2391, International Food Policy Research Institute (IFPRI).
    2. Francisco Campos & Michael Frese & Leonardo Iacovone & Hillary C. Johnson & David McKenzie & Mona Mensmann, 2025. "Long-Term and Lasting Impacts of Personal Initiative Training on Entrepreneurial Success," American Economic Review: Insights, American Economic Association, vol. 7(4), pages 463-479, December.
    3. Winnie C. Muangi, 2024. "Graduation from cash transfer programmes: Insights from Tanzania," WIDER Working Paper Series wp-2024-92, World Institute for Development Economic Research (UNU-WIDER).
    4. Rose, Julian & Neubauer, Florian & Ankel-Peters, Jörg, 2024. "Long-term effects of the targeting the ultra-poor program: A reproducibility and replicability assessment of Banerjee et al. (2021)," Ruhr Economic Papers 1107, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Hirvonen, Kalle & Abate, Gashaw T. & Berhane, Guush & Gilligan, Daniel O. & Hidrobo, Melissa & Hoddinott, John F. & Leight, Jessica & Taffesse, Alemayehu Seyoum, 2025. "Graduating from Ethiopia’s Productive Safety Net Programme: What have we learned?," IFPRI discussion papers 2366, International Food Policy Research Institute (IFPRI).

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • 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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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