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Emergency cash transfers for informal workers: Impact evidence from Mexico

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  • Cañedo, Ana P.
  • Fabregas, Raissa
  • Gupta, Prankur

Abstract

We study the effects of a sizeable ($526 PPP) one-time-only emergency cash transfer targeted at self-employed, sub-employed, and informal sector workers during the COVID-19 pandemic. The transfers were processed on a first-come, first-served basis until program funds were depleted, creating a plausible source of exogenous variation in program participation. Combining this discontinuity with a purpose-built phone survey, we find substantial positive effects on measures of food security and psychological well-being three to four months after reception. The point estimates for summary measures of business health outcomes and support for lockdowns are positive but imprecisely estimated.

Suggested Citation

  • Cañedo, Ana P. & Fabregas, Raissa & Gupta, Prankur, 2023. "Emergency cash transfers for informal workers: Impact evidence from Mexico," Journal of Public Economics, Elsevier, vol. 219(C).
    • Handle: RePEc:eee:pubeco:v:219:y:2023:i:c:s0047272723000026
    DOI: 10.1016/j.jpubeco.2023.104820
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    2. Vera-Cossio, Diego A. & Hoffmann, Bridget & Pecha, Camilo & Gallego, Jorge & Stampini, Marco & Vargas, David & Medina, María Paula & Álvarez, Esteban, 2023. "Re-thinking Social Protection: From Poverty Alleviation to Building Resilience in Middle-Income Households," IDB Publications (Working Papers) 12925, Inter-American Development Bank.
    3. Ghorpade,Yashodhan & Franco Restrepo,Camila & Castellanos Rodriguez,Luis Eduardo, 2024. "Social Protection and Labor Market Policies for the Informally Employed : A Review of Evidence from Low- and Middle-Income Countries," Social Protection Discussion Papers and Notes 188471, The World Bank.
    4. Cho, Yoonyoung & Molina, Teresa, 2024. "The Importance of Existing Social Protection Programs for Mental Health in Pandemic Times," IZA Discussion Papers 16737, Institute of Labor Economics (IZA).

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