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How Social Assistance Affects Subjective Wellbeing: Lessons from Kyrgyzstan

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  • Franziska Gassmann
  • Bruno Martorano
  • Jennifer Waidler

Abstract

This paper investigates the effects of social assistance on subjective well-being looking at the case of Kyrgyzstan. For this purpose, we exploit recent changes in the design of social assistance and apply a difference in difference (DiD) method combined with an inverse probability weighting (IPW) technique. In contrast to the existing literature, we find that in the short-term, the receipt of social assistance benefits is associated with lower levels of subjective well-being. Our findings also reveal that participation in social assistance leads to some reduction in satisfaction regarding recipients’ own economic conditions. Moreover, we find that the negative effects on subjective well-being disappear for the oldest generations, which experienced the dissolution of the Soviet Union. By contrast, the effect is negative for the youth, who grew up in a new society where needing help is ultimately the responsibility of the individual citizen. For individuals with high trust in political institutions, the negative effect of state intervention does not hold, while it persists in case of low trust in political institutions.

Suggested Citation

  • Franziska Gassmann & Bruno Martorano & Jennifer Waidler, 2022. "How Social Assistance Affects Subjective Wellbeing: Lessons from Kyrgyzstan," Journal of Development Studies, Taylor & Francis Journals, vol. 58(4), pages 827-847, April.
    • Handle: RePEc:taf:jdevst:v:58:y:2022:i:4:p:827-847
    DOI: 10.1080/00220388.2021.1988079
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    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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