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Social Protection and Social Distancing During the Pandemic: Mobile Money Transfers in Ghana

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Listed:
  • Dean Karlan
  • Matt Lowe
  • Robert Darko Osei
  • Isaac Osei-Akoto
  • Benjamin N. Roth
  • Christopher R. Udry

Abstract

We randomized mobile money transfers to a sample of low-income Ghanaians during the COVID-19 pandemic. Treated households received eight transfers that sum to roughly one month’s income, while control households only received one transfer. The mere announcement of upcoming transfers has null effects. Once disbursed, transfers increase contemporaneous food expenditure by 8% and income by 20%, but do not affect psychological well-being. Over 40% of the transfers are spent on food. We find suggestive evidence that transfers increased social distancing. The positive effect on income does not persist to two years after the last transfer, and surprisingly, two-year effects on consumption and psychological well-being are negative. Together, we learn that pandemic-era cash transfers can support households economically without diminishing adherence to public health protocols, though with null or negative long-term effects.

Suggested Citation

  • Dean Karlan & Matt Lowe & Robert Darko Osei & Isaac Osei-Akoto & Benjamin N. Roth & Christopher R. Udry, 2022. "Social Protection and Social Distancing During the Pandemic: Mobile Money Transfers in Ghana," NBER Working Papers 30309, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30309
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    2. Baur, Dirk G. & Gopalakrishnan, Balagopal & Mohapatra, Sanket, 2025. "Alternative investment behavior of households during crises: The effects of the COVID-19 shock on gold purchases in India," Journal of Economic Behavior & Organization, Elsevier, vol. 229(C).
    3. Eliana Carranza & Stan Veuger & Michael Weber, 2023. "Protecting Workers, Firms, and Worker-Firm Attachment During COVID-19," World Bank Publications - Reports 40089, The World Bank Group.
    4. de Leon, Fernanda L. Lopez & Malde, Bansi & McQuillin, Ben, 2023. "The effects of emergency government cash transfers on beliefs and behaviours during the COVID pandemic: Evidence from Brazil," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 140-155.
    5. Aiken, Emily & Bellue, Suzanne & Blumenstock, Joshua E. & Karlan, Dean & Udry, Christopher, 2025. "Estimating impact with surveys versus digital traces: Evidence from randomized cash transfers in Togo," Journal of Development Economics, Elsevier, vol. 175(C).
    6. Fiala, Nathan & Rose, Julian & Aryemo, Filder & Ankel-Peters, Jörg, 2025. "Timing matters: The (very) long-run impacts of cash grants during a crisis," Journal of Development Economics, Elsevier, vol. 175(C).

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    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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