Can a light-touch graduation model enhance livelihood outcomes? Evidence from Ethiopia

In recent years, a growing literature has examined the potential of multifaceted, intensive graduation models that address multiple barriers constraining households’ exit from poverty. In this paper, we present new evidence from a randomized trial of a lighter-touch (less intensive) graduation model implemented in Ethiopia. The primary experimental arms are a bundled intervention including a transfer valued at PPP $374 (randomly assigned to be cash or equivalent value in poultry), training, and savings groups; a simpler intervention including training and savings groups only; and a control arm. We find that three years post-baseline, the intervention inclusive of the transfer leads to increases in savings and cash income from livestock, though there is no shift in consumption or food security and very little evidence of asset accumulation; these effects are generally consistent regardless of the modality of the transfer (cash versus poultry). The effects of training and savings groups alone are minimal.