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

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  • Jules Gazeaud

    (NOVAFRICA, Nova School of Business and Economics, Universidade Nova de Lisboa, Campus de Carcavelos, Rua da Holanda 1, 2775-405 Carcavelos, Portugal)

  • Victor Stephane

    (Univ Lyon, UJM Saint-Etienne, GATE UMR 5824, F-42023 Saint-Etienne, France)

Abstract

Despite the popularity of public works programs in developing countries, there is virtually no evidence on the value of the infrastructure they generate. This paper attempts to start filling this gap in the context of the PSNP – a largescale 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 3.6 percent increase in agricultural productivity. This contrasts with existing narratives and calls for more research on the productive effects of public works.

Suggested Citation

  • Jules Gazeaud & Victor Stephane, 2020. "Productive Workfare? Evidence from Ethiopia’s Productive Safety Net Program," Working Papers 2037, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
  • Handle: RePEc:gat:wpaper:2037
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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

    Keywords

    Social Protection; Public Works; Transfers; Ethiopia; PSNP;
    All these keywords.

    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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