IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1989.html

The impacts of cash transfers on mental health and investments: Experimental evidence from Mali

Author

Listed:
  • Hidrobo, Melissa
  • Karachiwalla, Naureen
  • Roy, Shalini

Abstract

Economic resilience requires future-oriented decision-making around income generation and protection in case of shocks. However, poverty is highly correlated with poor mental health, limiting forward-looking decision-making, thus perpetuating poverty. In this paper, we estimate the impacts of Mali's national cash transfer program, Filets Sociaux (Jigis-émèjiri), on measures of psychological well-being, cognition, and time preferences. We find that receiving the program improved household decision-makers' perceptions of economic and food security and reduced their self-reported anxiety. While cognitive function was not a ected, recipients of the transfers experienced greater self-esteem and a modest increase in a measure of patience. Consistent with reduced stress, higher self-esteem, and increased patience, the program also increased investments in productive assets. Results suggest that, in addition to cash transfers providing the economic resources to support investments in the future, they may also build psychological resources for supporting these investments.

Suggested Citation

  • Hidrobo, Melissa & Karachiwalla, Naureen & Roy, Shalini, 2020. "The impacts of cash transfers on mental health and investments: Experimental evidence from Mali," IFPRI discussion papers 1989, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1989
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10568/143576
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cornelius Christian & Lukas Hensel & Christopher Roth, 2019. "Income Shocks and Suicides: Causal Evidence From Indonesia," The Review of Economics and Statistics, MIT Press, vol. 101(5), pages 905-920, December.
    2. Lund, Crick & Breen, Alison & Flisher, Alan J. & Kakuma, Ritsuko & Corrigall, Joanne & Joska, John A. & Swartz, Leslie & Patel, Vikram, 2010. "Poverty and common mental disorders in low and middle income countries: A systematic review," Social Science & Medicine, Elsevier, vol. 71(3), pages 517-528, August.
    3. Spears Dean, 2011. "Economic Decision-Making in Poverty Depletes Behavioral Control," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-44, December.
    4. McKenzie, David, 2012. "Beyond baseline and follow-up: The case for more T in experiments," Journal of Development Economics, Elsevier, vol. 99(2), pages 210-221.
    5. Christopher Blattman & Julian C. Jamison & Margaret Sheridan, 2017. "Reducing Crime and Violence: Experimental Evidence from Cognitive Behavioral Therapy in Liberia," American Economic Review, American Economic Association, vol. 107(4), pages 1165-1206, April.
    6. Berhane, Guush & Hoddinott, John F. & Kumar, Neha, 2017. "Synopsis: The impact of Ethiopia’s Productive Safety Net Programme on the nutritional status of children: 2008–2012," ESSP research notes 64, International Food Policy Research Institute (IFPRI).
    7. repec:fpr:issbrf:9780896298552 is not listed on IDEAS
    8. von Grebmer, Klaus & Saltzman, Amy & Birol, Ekin & Wiesmann, Doris & Prasai, Nilam & Yin, Sandra & Yohannes, Yisehac & Menon, Purnima & Thompson, Jennifer & Sonntag, Andrea, 2014. "2014 Global hunger index: The challenge of hidden hunger," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-89629-959-7 edited by Neubauer, Larissa; Sonntag, Andrea; Towey, Olive; Yin, Sandra; von Grebmer, Klaus, October.
      • Birol, Ekin & Menon, Purnima & Prasai, Nilam & Saltzman, Amy & Sonntag, Andrea & Thompson, Jennifer & Wiesman, Doris & Yin, Sandra & Yohannes, Yisehac & von Grebmer, Klaus, 2014. "2014 Global Hunger Index: The challenge of hidden hunger," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-89629-958-0 edited by Neubauer, Larissa; Sonntag, Andrea; Towey, Olive; Yin, Sandra; von Grebmer, Klaus, October.
    9. Matthew W. Ridley & Gautam Rao & Frank Schilbach & Vikram H. Patel, 2020. "Poverty, Depression, and Anxiety: Causal Evidence and Mechanisms," NBER Working Papers 27157, National Bureau of Economic Research, Inc.
    10. Hidrobo, Melissa & Hoddinott, John & Peterman, Amber & Margolies, Amy & Moreira, Vanessa, 2014. "Cash, food, or vouchers? Evidence from a randomized experiment in northern Ecuador," Journal of Development Economics, Elsevier, vol. 107(C), pages 144-156.
    11. Rosenzweig, Mark R & Wolpin, Kenneth I, 1993. "Credit Market Constraints, Consumption Smoothing, and the Accumulation of Durable Production Assets in Low-Income Countries: Investment in Bullocks in India," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 223-244, April.
    12. Johannes Haushofer & Robert Mudida & Jeremy P. Shapiro, 2020. "The Comparative Impact of Cash Transfers and a Psychotherapy Program on Psychological and Economic Well-being," NBER Working Papers 28106, National Bureau of Economic Research, Inc.
    13. Pescosolido, B.A. & Medina, T.R. & Martin, J.K. & Long, J.S., 2013. "The "backbone" of stigma: Identifying the Global core of public prejudice associated with mental illness," American Journal of Public Health, American Public Health Association, vol. 103(5), pages 853-860.
    14. Johannes Haushofer & Jeremy Shapiro, 2016. "The Short-term Impact of Unconditional Cash Transfers to the Poor: ExperimentalEvidence from Kenya," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1973-2042.
    15. Berhane, Guush & Hoddinott, John F. & Kumar, Neha, 2017. "The impact of Ethiopia’s Productive Safety Net Programme on the nutritional status of children: 2008–2012," IFPRI discussion papers 1604, International Food Policy Research Institute (IFPRI).
    16. Berhane, Guush & Hoddinott, John F. & Kumar, Neha, 2017. "The impact of Ethiopia’s Productive Safety Net Programme on the nutritional status of children: 2008–2012," ESSP working papers 99, International Food Policy Research Institute (IFPRI).
    17. Michael Daly & Liam Delaney & Colm P. Harmon, 2009. "Psychological and Biological Foundations of Time Preference," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 659-669, 04-05.
    18. Fernald, Lia C.H. & Gunnar, Megan R., 2009. "Poverty-alleviation program participation and salivary cortisol in very low-income children," Social Science & Medicine, Elsevier, vol. 68(12), pages 2180-2189, June.
    19. Birol, Ekin & Menon, Purnima & Prasai, Nilam & Saltzman, Amy & Sonntag, Andrea & Thompson, Jennifer & Wiesmann, Doris & Yin, Sandra & Yohannes, Yisehac & von Grebmer, Klaus, 2014. "Synopsis of 2014 Global hunger index: The challenge of hidden hunger," Issue briefs 83, International Food Policy Research Institute (IFPRI).
    20. Shiv, Baba & Fedorikhin, Alexander, 1999. "Heart and Mind in Conflict: The Interplay of Affect and Cognition in Consumer Decision Making," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 26(3), pages 278-292, December.
    21. Hoel, Jessica B. & Schwab, Benjamin & Hoddinott, John, 2016. "Self-control exertion and the expression of time preference: Experimental results from Ethiopia," Journal of Economic Psychology, Elsevier, vol. 52(C), pages 136-146.
    22. Sarah Baird & Jacobus de Hoop & Berk Özler, 2013. "Income Shocks and Adolescent Mental Health," Journal of Human Resources, University of Wisconsin Press, vol. 48(2), pages 370-403.
    23. repec:wbk:wbpubs:29789 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hidrobo, Melissa & Karachiwalla, Naureen & Roy, Shalini, 2023. "The impacts of cash transfers on mental health and investments: Experimental evidence from Mali," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 608-630.
    2. Ejima, Joseph Ugbede & Kumar, Parmod & Subramanian, Arjunan, 2025. "Cash transfer and a psychological intervention: Impact on alcohol outcomes and household welfare in India," Social Science & Medicine, Elsevier, vol. 382(C).
    3. Andersen, Asbjørn G. & Kotsadam, Andreas & Somville, Vincent, 2022. "Material resources and well-being — Evidence from an Ethiopian housing lottery," Journal of Health Economics, Elsevier, vol. 83(C).
    4. McGuire, Joel & Kaiser, Caspar & Bach-Mortensen, Anders, 2020. "The impact of cash transfers on subjective well-being and mental health in low- and middle- income countries: A systematic review and meta-analysis," SocArXiv ydr54, Center for Open Science.
    5. Abay, Kibrom A. & Abdelfattah, Lina Alaaeldin & Abushama, Hala & Kirui, Oliver K. & Nigus, Halefom Yigzaw & Siddig, Khalid, 2025. "Can digital cash transfers serve those in active conflict? Evidence from a randomized intervention in Sudan," IFPRI discussion papers 2374, International Food Policy Research Institute (IFPRI).
    6. Haushofer, Johannes & Chemin, Matthieu & Jang, Chaning & Abraham, Justin, 2020. "Economic and psychological effects of health insurance and cash transfers: Evidence from a randomized experiment in Kenya," Journal of Development Economics, Elsevier, vol. 144(C).
    7. Alloush, Mo & Bloem, Jeffrey R., 2022. "Neighborhood violence, poverty, and psychological well-being," Journal of Development Economics, Elsevier, vol. 154(C).
    8. Clotilde Mahé & Philipp Hessel, 2022. "School-age exposure to conditional cash transfers and adult mental health: Evidence from Mexico’s Progresa," Documentos de trabajo 20155, Escuela de Gobierno - Universidad de los Andes.
    9. Lang,Megan Elizabeth & Soule,Edward & Tinsley,Catherine H., 2023. "Psychology, Skills, or Cash ? Evidence on Complementary Investments for Anti-Poverty Programs," Policy Research Working Paper Series 10503, The World Bank.
    10. Johannes Haushofer & Robert Mudida & Jeremy P. Shapiro, 2020. "The Comparative Impact of Cash Transfers and a Psychotherapy Program on Psychological and Economic Well-being," NBER Working Papers 28106, National Bureau of Economic Research, Inc.
    11. Wicker, Till & Dalton, Patricio & van Soest, Daan, 2025. "Mental Accounting and Cash Transfers : Experimental Evidence from a Humanitarian Setting," Discussion Paper 2025-006, Tilburg University, Center for Economic Research.
    12. Garg, Teevrat & McCord, Gordon C. & Montfort, Aleister, 2025. "Can social protection reduce damages from higher temperatures?," Journal of Environmental Economics and Management, Elsevier, vol. 131(C).
    13. Hu, Dezhuang & Li, Tang, 2026. "Targeting mental wellness: Does China's multifaceted poverty alleviation policy bear fruit?," China Economic Review, Elsevier, vol. 95(C).
    14. Amaral, Sofia & Dinarte-Diaz, Lelys & Dominguez, Patricio & Perez-Vincent, Santiago M., 2024. "Helping families help themselves: The (Un)intended impacts of a digital parenting program," Journal of Development Economics, Elsevier, vol. 166(C).
    15. Matthew W. Ridley & Gautam Rao & Frank Schilbach & Vikram H. Patel, 2020. "Poverty, Depression, and Anxiety: Causal Evidence and Mechanisms," NBER Working Papers 27157, National Bureau of Economic Research, Inc.
    16. Clara Wollburg & Janina Isabel Steinert & Aaron Reeves & Elizabeth Nye, 2023. "Do cash transfers alleviate common mental disorders in low- and middle-income countries? A systematic review and meta-analysis," PLOS ONE, Public Library of Science, vol. 18(2), pages 1-24, February.
    17. Michaela Paffenholz, 2023. "Adolescents’ Mental Health and Human Capital: The Role of Socioeconomic Rank," CESifo Working Paper Series 10248, CESifo.
    18. Mariapia Mendola & Mengesha Yayo Negasi, 2019. "Nutritional and Schooling Impact of a Cash Transfer Program in Ethiopia: A Retrospective Analysis of Childhood Experience," Development Working Papers 451, Centro Studi Luca d'Agliano, University of Milano.
    19. Shapiro, Jeremy, 2019. "The impact of recipient choice on aid effectiveness," World Development, Elsevier, vol. 116(C), pages 137-149.
    20. Aanchal Bagga & Marcus Holmlund & Nausheen Khan & Subha Mani & Eric Mvukiyehe & Patrick Premand, 2026. "Do Public Works Programs Have Sustained Impacts? A Review of Experimental Studies from LMICs," The World Bank Research Observer, World Bank, vol. 41(1), pages 1-38.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:1989. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.