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The Comparative Impact of Cash Transfers and a Psychotherapy Program on Psychological and Economic Well-being

Author

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  • Haushofer, Johannes

    (Department of Economics, Stockholm University and)

  • Mudida, Robert

    (Strathmore Business School)

  • Shapiro, Jeremy

    (Busara Center for Behavioral Economics)

Abstract

We study the economic and psychological effects of a USD 1076 PPP unconditional cash transfer, a five-week psychotherapy program, and the combination of both interventions among 5,756 individuals in rural Kenya. One year after the interventions, cash transfer recipients had higher consumption, asset holdings, and revenue, as well as higher levels of psychological well-being than control households. In contrast, the psychotherapy program had no measurable effects on either psychological or economic outcomes, both for individuals with poor mental health at baseline and others. The effects of the combined treatment are similar to those of the cash transfer alone.

Suggested Citation

  • Haushofer, Johannes & Mudida, Robert & Shapiro, Jeremy, 2021. "The Comparative Impact of Cash Transfers and a Psychotherapy Program on Psychological and Economic Well-being," Working Paper Series 1377, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1377
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    References listed on IDEAS

    as
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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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