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The effects of cash and group therapy in the context of conflict: Evidence from a randomized evaluation in Ethiopia

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  • Hidrobo, Melissa
  • Alderman, Harold
  • Deyessa, Negussie
  • Gilligan, Daniel O.
  • Kalva, Parthu
  • Leight, Jessica
  • Mulford, Michael
  • Tambet, Heleene

Abstract

The prevalence of depression remains high in low-income contexts, particularly those affected by conflict. This paper reports on a randomized controlled trial conducted in rural Ethiopia assessing the effects of a psychological (group therapy) intervention delivered by non-specialist health staff, as well as a large one-time cash transfer delivered post-therapy. The trial includes three arms comparing group therapy, cash, and both jointly to a status quo control within a sample of individuals reporting some depressive symptoms or functional impairment at baseline. The study occurred between 2022 and 2024, during a period of active armed conflict. Findings show that sixteen months post-baseline, there are no persistent positive effects of group therapy alone; cash alone improves time use and economic outcomes. Group therapy and cash jointly improve psychosocial skills, time use, and economic outcomes, and in areas not affected by conflict, the joint intervention also improves mental health.

Suggested Citation

  • Hidrobo, Melissa & Alderman, Harold & Deyessa, Negussie & Gilligan, Daniel O. & Kalva, Parthu & Leight, Jessica & Mulford, Michael & Tambet, Heleene, 2026. "The effects of cash and group therapy in the context of conflict: Evidence from a randomized evaluation in Ethiopia," Journal of Development Economics, Elsevier, vol. 181(C).
    • Handle: RePEc:eee:deveco:v:181:y:2026:i:c:s0304387826000076
    DOI: 10.1016/j.jdeveco.2026.103724
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