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Resources, stimulation, and cognition: How transfer programs and preschool shape cognitive development in Uganda

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  • Gilligan, Daniel O.
  • Roy, Shalini

Abstract

Recent evidence shows that early childhood is a critical period for investments in human capital and that micronutrient deficiency and inadequate stimulation are major causes of impaired child development in poor countries. Transfers to households linked to preschool participation may improve cognitive and noncognitive development in early childhood, but there is limited evidence, all of it from Latin America. Using a randomized controlled trial design in Karamoja, Uganda, we examine the impacts of two transfer modalities – cash transfers or multiple-micronutrient-fortified food transfers – linked to preschool enrollment on child cognitive and noncognitive development. We find that food transfers have no significant impacts, but cash transfers cause significant increases in cognitive measures, by about 9 percentage points relative to the control group. We also explore mechanisms and find plausible evidence for cognitive impacts of cash through both a nutrition pathway (cash improves diet quality leading to reduction in anemia, implying improved cognition) and a stimulation pathway (cash increases contributions to preschool teachers leading to improved preschool capacity and higher child preschool attendance, implying higher quantity and quality of exposure to stimulation). We find that food has no significant impacts on these intermediate outcomes and consider which contextual factors may lead to its limited effects relative to cash. We also find indications that the food and cash treatments may have different distributional impacts. Results suggest that although the food treatment has no average impacts, it favors children with initially higher cognitive development, potentially causing slight increases in inequality among treated children. Meanwhile the cash treatment, which does have significant impacts on average, favors children with initially lower cognitive development, potentially reducing inequality among treated children.

Suggested Citation

  • Gilligan, Daniel O. & Roy, Shalini, 2013. "Resources, stimulation, and cognition: How transfer programs and preschool shape cognitive development in Uganda," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149822, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:149822
    DOI: 10.22004/ag.econ.149822
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    References listed on IDEAS

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    3. Ahmed, Akhter U. & Quisumbing, Agnes R. & Nasreen, Mahbuba & Hoddinott, John & Bryan, Elizabeth, 2009. "Comparing Food and Cash Transfers to the Ultra Poor in Bangladesh," Research Monographs 92803, CGIAR, International Food Policy Research Institute (IFPRI).
    4. Christina Paxson & Norbert Schady, 2007. "Does Money Matter? The Effects of Cash Transfers on Child Health and Development in Rural Ecuador," Working Papers 145, Princeton University, Department of Economics, Center for Economic Policy Studies..
    5. Christina Paxson & Norbert Schady, 2010. "Does Money Matter? The Effects of Cash Transfers on Child Development in Rural Ecuador," Economic Development and Cultural Change, University of Chicago Press, vol. 59(1), pages 187-229, October.
    6. Wiesmann, Doris & Bassett, Lucy & Benson, Todd & Hoddinott, John F., 2009. "Validation of the world food programme’s food consumption score and alternative indicators of household food security," IFPRI discussion papers 870, International Food Policy Research Institute (IFPRI).
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    1. Gentilini,Ugo, 2016. "The revival of the"cash versus food"debate : new evidence for an old quandary ?," Policy Research Working Paper Series 7584, The World Bank.
    2. Benjamin Schwab, 2020. "In the Form of Bread? A Randomized Comparison of Cash and Food Transfers in Yemen," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 91-113, January.
    3. Richard Groot & Tia Palermo & Sudhanshu Handa & Luigi Peter Ragno & Amber Peterman, 2017. "Themed Issue: Cash Transfers and Microfinance," Development Policy Review, Overseas Development Institute, vol. 35(5), pages 621-643, September.
    4. Alderman, Harold, 2014. "Can transfer programs be made more nutrition sensitive?," IFPRI discussion papers 1342, International Food Policy Research Institute (IFPRI).
    5. repec:fpr:export:1342 is not listed on IDEAS
    6. Peterman, Amber & Schwab, Benjamin & Roy, Shalini & Hidrobo, Melissa & Gilligan, Daniel O., 2021. "Measuring women’s decisionmaking: Indicator choice and survey design experiments from cash and food transfer evaluations in Ecuador, Uganda and Yemen," World Development, Elsevier, vol. 141(C).
    7. Jeong,Dahyeon & Trako,Iva, 2022. "Cash and In-Kind Transfers in Humanitarian Settings : A Review of Evidence and Knowledge Gaps," Policy Research Working Paper Series 10026, The World Bank.
    8. David K. Evans & Anna Popova, 2017. "Cash Transfers and Temptation Goods," Economic Development and Cultural Change, University of Chicago Press, vol. 65(2), pages 189-221.
    9. Gentilini, Ugo, 2014. "Our daily bread : what is the evidence on comparing cash versus food transfers?," The Social Policy and Labor Discussion Paper Series 89502, The World Bank.
    10. Abhijit V. Banerjee & Rema Hanna & Gabriel E. Kreindler & Benjamin A. Olken, 2017. "Debunking the Stereotype of the Lazy Welfare Recipient: Evidence from Cash Transfer Programs," The World Bank Research Observer, World Bank, vol. 32(2), pages 155-184.

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