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Machine Learning and Mobile Phone Data Can Improve the Targeting of Humanitarian Assistance

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  • Emily Aiken
  • Suzanne Bellue
  • Dean Karlan
  • Christopher R. Udry
  • Joshua Blumenstock

Abstract

The COVID-19 pandemic has devastated many low- and middle-income countries, causing widespread food insecurity and a sharp decline in living standards. In response to this crisis, governments and humanitarian organizations worldwide have distributed social assistance to over 1.5 billion people. Targeting is a central challenge in administering these programs: given available data, how does one rapidly identify those with the greatest need? Here we show that data from mobile phone networks can improve the targeting of humanitarian assistance. Our approach uses traditional survey data to train machine-learning algorithms to recognize patterns of poverty in mobile phone data; the trained algorithms can then prioritize aid to the poorest mobile subscribers. We evaluate this approach by studying Togo’s flagship emergency cash transfer program, which used these algorithms to disburse millions of dollars in COVID-19 relief aid. Our analysis compares outcomes – including exclusion errors, total social welfare, and measures of fairness – under different targeting regimes. Relative to the geographic targeting options considered by the Government of Togo, the machine learning approach reduces errors of exclusion by 4-21%. Relative to methods requiring a comprehensive social registry (a hypothetical exercise; no such registry exists in Togo), the machine learning approach increases exclusion errors by 9-35%. These results highlight the potential for new data sources to complement traditional methods for targeting humanitarian assistance, particularly in crisis settings when traditional data are missing or out of date.

Suggested Citation

  • Emily Aiken & Suzanne Bellue & Dean Karlan & Christopher R. Udry & Joshua Blumenstock, 2021. "Machine Learning and Mobile Phone Data Can Improve the Targeting of Humanitarian Assistance," NBER Working Papers 29070, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:29070
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    Cited by:

    1. Ola Hall & Francis Dompae & Ibrahim Wahab & Fred Mawunyo Dzanku, 2023. "A review of machine learning and satellite imagery for poverty prediction: Implications for development research and applications," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1753-1768, October.
    2. Fasani, Francesco & Leone Sciabolazza, Valerio & Molini, Vasco, 2022. "Facing Displacement and a Global Pandemic: Evidence from a Fragile State," CEPR Discussion Papers 17104, C.E.P.R. Discussion Papers.
    3. Ahmed Mushfiq Mobarak & Edward Miguel, 2022. "The Economics of the COVID-19 Pandemic in Poor Countries," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 253-285, August.
    4. Anders Christensen & Joel Ferguson & Sim'on Ram'irez Amaya, 2022. "Incorporating High-Frequency Weather Data into Consumption Expenditure Predictions," Papers 2211.01406, arXiv.org.
    5. Vu, Khoa & Vuong, Nguyen Dinh Tuan & Vu-Thanh, Tu-Anh & Nguyen, Anh Ngoc, 2022. "Income shock and food insecurity prediction Vietnam under the pandemic," World Development, Elsevier, vol. 153(C).

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    More about this item

    JEL classification:

    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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