IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

How can safety nets contribute to economic growth ?

  • Alderman, Harold
  • Yemtsov, Ruslan

The paper provides an up-to date and selective review of the literature on how social safety nets contribute to growth. The evidence is carefully chosen to show how safety nets have the potential to overcome constraints on growth linked to market failures, and is organized into 4 distinct pathways: i) encouraging asset accumulation by changing incentives and by addressing imperfections in financial markets caused by constraints in obtaining credit, and from information asymmetries; overcoming such failures helps households to invest into their human capital or productive assets; ii) failures in insurance markets especially in low income setting; safety nets are assisting in managing risk both ex post and ex ante; iii) safety nets are overcoming failure to create assets and other local economy complementary factors to household-level investments; iv) safety nets are shown to relax political constraints on policy. Safety nets have a dual objective of directly alleviating poverty through transfers to the poor and of triggering higher growth for the poor. However, the trade-off between the dual objectives of equity and growth is not eliminated by the potential for productive safety nets; this remains critical for designing social policies.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2013/05/07/000158349_20130507154500/Rendered/PDF/wps6437.pdf
Download Restriction: no

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6437.

as
in new window

Length:
Date of creation: 01 May 2013
Date of revision:
Handle: RePEc:wbk:wbrwps:6437
Contact details of provider: Postal:
1818 H Street, N.W., Washington, DC 20433

Phone: (202) 477-1234
Web page: http://www.worldbank.org/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
  2. de Brauw, Alan & Hoddinott, John, 2008. "Must conditional cash transfer programs be conditioned to be effective?: The impact of conditioning transfers on school enrollment in Mexico," IFPRI discussion papers 757, International Food Policy Research Institute (IFPRI).
  3. Akresh, Richard & de Walque, Damien & Kazianga, Harounan, 2012. "Alternative Cash Transfer Delivery Mechanisms: Impacts on Routine Preventative Health Clinic Visits in Burkina Faso," IZA Discussion Papers 6321, Institute for the Study of Labor (IZA).
  4. Xavier Gine & James Vickery & Shawn Cole, 2013. "How Does Risk Management Influence Production Decisions? Evidence From a Field Experiment," 2013 Meeting Papers 676, Society for Economic Dynamics.
  5. Manacorda, Marco & Miguel, Edward & Vigorito, Andrea, 2009. "Government Transfers and Political Support," Center for International and Development Economics Research, Working Paper Series qt9n42t9sw, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
  6. Sarah Baird & Craig McIntosh & Berk �zler, 2011. "Cash or Condition? Evidence from a Cash Transfer Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1709-1753.
  7. Leonardo Bursztyn & Lucas C. Coffman, 2012. "The Schooling Decision: Family Preferences, Intergenerational Conflict, and Moral Hazard in the Brazilian Favelas," Journal of Political Economy, University of Chicago Press, vol. 120(3), pages 359 - 397.
  8. Mehlum, Halvor & Moene, Karl & Torvik, Ragnar, 2005. "Crime induced poverty traps," Journal of Development Economics, Elsevier, vol. 77(2), pages 325-340, August.
  9. Gertler, Paul & Martinez, Sebastian & Rubio-Codina, Marta, 2006. "Investing cash transfers to raise long term living standards," Policy Research Working Paper Series 3994, The World Bank.
  10. John Hoddinott & Guush Berhane & Daniel O. Gilligan & Neha Kumar & Alemayehu Seyoum Taffesse, 2012. "The Impact of Ethiopia's Productive Safety Net Programme and Related Transfers on Agricultural Productivity," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 21(5), pages -786, November.
  11. Cally Ardington & Anne Case & Victoria Hosegood, 2008. "Labor supply responses to large social transfers: Longitudinal evidence from South Africa," Working Papers 1010, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  12. Skoufias, Emmanuel & di Maro, Vincenzo, 2006. "Conditional cash transfers, adult work incentives, and poverty," Policy Research Working Paper Series 3973, The World Bank.
  13. Simon Davies & James Davey, 2008. "A Regional Multiplier Approach to Estimating the Impact of Cash Transfers on the Market: The Case of Cash Transfers in Rural Malawi," Development Policy Review, Overseas Development Institute, vol. 26(1), pages 91-111, 01.
  14. M. Adato & L. Haddad, 2002. "Targeting Poverty through Community-Based Public Works Programmes: Experience from South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 1-36.
  15. Giles, John & Satriawan, Elan, 2010. "Protecting child nutritional status in the aftermath of a financial crisis : evidence from Indonesia," Policy Research Working Paper Series 5471, The World Bank.
  16. Akresh, Richard & de Walque, Damien & Kazianga, Harounan, 2013. "Cash transfers and child schooling : evidence from a randomized evaluation of the role of conditionality," Policy Research Working Paper Series 6340, The World Bank.
  17. Shawn Cole & Xavier Giné & Jeremy Tobacman & Petia Topalova & Robert M. Townsend & James Vickery, 2009. "Barriers to household risk management: evidence from India," Staff Reports 373, Federal Reserve Bank of New York.
  18. María Laura Alzúa & Guillermo Cruces & Laura Ripani, 2010. "Welfare Programs and Labor Supply in Developing Countries. Experimental Evidence from Latin America," CEDLAS, Working Papers 0095, CEDLAS, Universidad Nacional de La Plata.
  19. Hongbin Cai & Yuyu Chen & Hanming Fang & Li-An Zhou, 2009. "Microinsurance, Trust and Economic Development: Evidence from a Randomized Natural Field Experiment," PIER Working Paper Archive 09-034, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  20. Stefan Dercon & Luc Christiaensen, 2008. "Consumption risk, technology adoption and poverty traps: evidence from Ethiopia," WEF Working Papers 0035, ESRC World Economy and Finance Research Programme, Birkbeck, University of London.
  21. Xavier Giné & Robert M. Townsend & James Vickery, 2007. "Patterns of rainfall insurance participation in rural India," Staff Reports 302, Federal Reserve Bank of New York.
  22. de Janvry, Alain & Finan, Frederico S. & Sadoulet, Elisabeth, 2010. "Local Electoral Incentives and Decentralized Program Performance," IZA Discussion Papers 5382, Institute for the Study of Labor (IZA).
  23. Felipe Barrera-Osorio & Marianne Bertrand & Leigh L. Linden & Francisco Perez-Calle, 2011. "Improving the Design of Conditional Transfer Programs: Evidence from a Randomized Education Experiment in Colombia," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 167-95, April.
  24. King , Elizabeth M. & Behrman, Jere R., 2008. "Timing and duration of exposure in evaluations of social programs," Policy Research Working Paper Series 4686, The World Bank.
  25. Rosenzweig, Mark R. & Binswanger, Hans P., 1992. "Wealth, weather risk, and the composition and profitability of agricultural investments," Policy Research Working Paper Series 1055, The World Bank.
  26. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-90, October.
  27. Karen Macours & Norbert Schady & Renos Vakis, 2012. "Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood: Evidence from a Randomized Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 247-73, April.
  28. Baez Ramirez,Javier Eduardo & Camacho,Adriana & Conover, Emily & Zarate,Roman Andres, 2012. "Conditional cash transfers, political participation, and voting behavior," Policy Research Working Paper Series 6215, The World Bank.
  29. Sumarto, Sudarno & Suryahadi, Asep & Pritchett, Lant, 2003. "Safety Nets or Safety Ropes? Dynamic Benefit Incidence of Two Crisis Programs in Indonesia," World Development, Elsevier, vol. 31(7), pages 1257-1277, July.
  30. Daniel Gilligan & John Hoddinott & Alemayehu Seyoum Taffesse, 2009. "The Impact of Ethiopia's Productive Safety Net Programme and its Linkages," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1684-1706.
  31. Alderman, Harold & Yemtsov, Ruslan, 2012. "Productive role of safety nets : background paper for the World Bank 2012-2022 social protection and labor strategy," Social Protection and Labor Policy and Technical Notes 67609, The World Bank.
  32. Matteo Bobba, 2013. "Liquidity, Risk, and Occupational Choices," Review of Economic Studies, Oxford University Press, vol. 80(2), pages 491-511.
  33. Peter Kooreman, 2000. "The Labeling Effect of a Child Benefit System," American Economic Review, American Economic Association, vol. 90(3), pages 571-583, June.
  34. Manuela Angelucci & Giacomo De Giorgi, 2009. "Indirect Effects of an Aid Program: How Do Cash Transfers Affect Ineligibles' Consumption?," American Economic Review, American Economic Association, vol. 99(1), pages 486-508, March.
  35. Xavier Sala-I-Martin, 1997. "Transfers, Social Safety Nets, and Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 44(1), pages 81-102, March.
  36. Daniel Kostzer, 2008. ""Argentina--A Case Study on the Plan Jefes y Jefas de Hogar Desocupados, or the Employment Road to Economic Recovery," Economics Working Paper Archive wp_534, Levy Economics Institute.
  37. Schady, Norbert & Rosero, José, 2008. "Are cash transfers made to women spent like other sources of income?," Economics Letters, Elsevier, vol. 101(3), pages 246-248, December.
  38. Barrientos, Armando, 2012. "Social Transfers and Growth: What Do We Know? What Do We Need to Find Out?," World Development, Elsevier, vol. 40(1), pages 11-20.
  39. A. B. Atkinson, 1999. "The Economic Consequences of Rolling Back the Welfare State," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011719, June.
  40. Barro, Robert J., 1976. "Perceived Wealth in Bonds and Social Security and the Ricardian Equivalence Theorem: Reply to Feldstein and Buchanan," Scholarly Articles 3612770, Harvard University Department of Economics.
  41. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
  42. Karen Thome & Mateusz Filipski & Justin Kagin & J. Edward Taylor & Benjamin Davis, 2013. "Agricultural Spillover Effects of Cash Transfers: What Does LEWIE Have to Say?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1338-1344.
  43. Bobba, Matteo & Bianchi, Milo, 2013. "Liquidity, Risk, and Occupational Choices," Economics Papers from University Paris Dauphine 123456789/5380, Paris Dauphine University.
  44. Filmer, Deon & Schady, Norbert, 2011. "Does more cash in conditional cash transfer programs always lead to larger impacts on school attendance?," Journal of Development Economics, Elsevier, vol. 96(1), pages 150-157, September.
  45. de Janvry, Alain & Finan, Frederico & Sadoulet, Elisabeth & Vakis, Renos, 2006. "Can conditional cash transfer programs serve as safety nets in keeping children at school and from working when exposed to shocks?," Journal of Development Economics, Elsevier, vol. 79(2), pages 349-373, April.
  46. Ravallion, Martin & Chen, Shaohua, 2005. "Hidden impact? Household saving in response to a poor-area development project," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2183-2204, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6437. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.