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Productive Workfare? Evidence from Ethiopia's Productive Safety Net Program

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  • Jules Gazeaud
  • Victor Stephane

Abstract

Public works programs have long been a popular policy tool to reduce poverty and build productive infrastructure. Although an extensive literature has documented the effect of these programs on poverty, there is virtually no evidence on the productive effect of the infrastructure. This paper attempts to start filling this gap in the context of the Productive Safety Net Program—a large‐scale public works program implemented in Ethiopia since 2005. Under the program, millions of beneficiaries received social transfers conditional on their participation in activities such as land improvements and soil and water conservation measures. We examine the value of these activities using a satellite‐based indicator of agricultural productivity and (reweighted) difference‐in‐differences estimates. Results show that the program is associated with limited changes in agricultural productivity. The upper bound of the main estimate is equivalent to a 2.2% increase in agricultural yield. This contrasts with existing narratives and calls for more research on the productive effects of public works.

Suggested Citation

  • Jules Gazeaud & Victor Stephane, 2023. "Productive Workfare? Evidence from Ethiopia's Productive Safety Net Program," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 265-290, January.
  • Handle: RePEc:wly:ajagec:v:105:y:2023:i:1:p:265-290
    DOI: 10.1111/ajae.12310
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    4. Hirvonen, Kalle & Machado, Elia Axinia & Simons, Andrew M., 2024. "Do social protection programs reduce conflict risk? Evidence from a large-scale safety net program in rural Ethiopia," 2024 Annual Meeting, July 28-30, New Orleans, LA 343590, Agricultural and Applied Economics Association.

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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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