IDEAS home Printed from https://ideas.repec.org/p/zbw/rwirep/802.html
   My bibliography  Save this paper

The long term impacts of grants on poverty: 9-year evidence from Uganda's Youth Opportunities Program

Author

Listed:
  • Blattman, Christopher
  • Fiala, Nathan
  • Martinez, Sebastian

Abstract

In 2008, Uganda granted hundreds of small groups $400/person to help members start individual skilled trades. Four years on, an experimental evaluation found grants raised earnings by 38% (Blattman, Fiala, Martinez 2014). We return after 9 years to find these start-up grants raised earnings and consumption temporarily only. Grantees' investment leveled off; controls eventually increased their incomes through business and casual labor; and so both groups converged in employment, earnings, and consumption. Grants had lasting impacts on assets, skilled work, and possibly child health, but had little effect on mortality, fertility, health or education.

Suggested Citation

  • Blattman, Christopher & Fiala, Nathan & Martinez, Sebastian, 2019. "The long term impacts of grants on poverty: 9-year evidence from Uganda's Youth Opportunities Program," Ruhr Economic Papers 802, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  • Handle: RePEc:zbw:rwirep:802
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/195376/1/1663449554.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Willa Friedman & Michael Kremer & Edward Miguel & Rebecca Thornton, 2016. "Education as Liberation?," Economica, London School of Economics and Political Science, vol. 83(329), pages 1-30, January.
    2. Aart Kraay & David McKenzie, 2014. "Do Poverty Traps Exist? Assessing the Evidence," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 127-148, Summer.
    3. Christopher Blattman & Julian C. Jamison & Margaret Sheridan, 2017. "Reducing Crime and Violence: Experimental Evidence from Cognitive Behavioral Therapy in Liberia," American Economic Review, American Economic Association, vol. 107(4), pages 1165-1206, April.
    4. Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2001. "Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 556-592.
    5. Benjamin Feigenberg & Erica Field & Rohini Pande, 2013. "The Economic Returns to Social Interaction: Experimental Evidence from Microfinance," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1459-1483.
    6. Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
    7. Dean Karlan & Robert Osei & Isaac Osei-Akoto & Christopher Udry, 2014. "Agricultural Decisions after Relaxing Credit and Risk Constraints," The Quarterly Journal of Economics, Oxford University Press, vol. 129(2), pages 597-652.
    8. Sarah Baird & Joan Hamory Hicks & Michael Kremer & Edward Miguel, 2016. "Worms at Work: Long-run Impacts of a Child Health Investment," The Quarterly Journal of Economics, Oxford University Press, vol. 131(4), pages 1637-1680.
    9. Damon Jones & David Molitor & Julian Reif, 2019. "What do Workplace Wellness Programs do? Evidence from the Illinois Workplace Wellness Study," The Quarterly Journal of Economics, Oxford University Press, vol. 134(4), pages 1747-1791.
    10. Abhijit Vinayak Banerjee, 2013. "Microcredit Under the Microscope: What Have We Learned in the Past Two Decades, and What Do We Need to Know?," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 487-519, May.
    11. Oriana Bandiera & Robin Burgess & Narayan Das & Selim Gulesci & Imran Rasul & Munshi Sulaiman, 2017. "Labor Markets and Poverty in Village Economies," The Quarterly Journal of Economics, Oxford University Press, vol. 132(2), pages 811-870.
    12. Francisco J. Buera & Joseph P. Kaboski & Yongseok Shin, 2014. "Macro-perspective on Asset Grants Programs: Occupational and Wealth Mobility," American Economic Review, American Economic Association, vol. 104(5), pages 159-164, May.
    13. Cho, Yoonyoung & Honorati, Maddalena, 2014. "Entrepreneurship programs in developing countries: A meta regression analysis," Labour Economics, Elsevier, vol. 28(C), pages 110-130.
    14. repec:oup:qjecon:v:129:y:2014:i:2:p:697-752. is not listed on IDEAS
    15. Anna Aizer & Shari Eli & Joseph Ferrie & Adriana Lleras-Muney, 2016. "The Long-Run Impact of Cash Transfers to Poor Families," American Economic Review, American Economic Association, vol. 106(4), pages 935-971, April.
    16. Christopher Blattman & Mathilde Emeriau & Nathan Fiala, 2018. "Do Anti-Poverty Programs Sway Voters? Experimental Evidence from Uganda," The Review of Economics and Statistics, MIT Press, vol. 100(5), pages 891-905, December.
    17. Christopher Udry & Santosh Anagol, 2006. "The Return to Capital in Ghana," American Economic Review, American Economic Association, vol. 96(2), pages 388-393, May.
    18. Sarah Baird & Craig McIntosh & Berk Özler, 2011. "Cash or Condition? Evidence from a Cash Transfer Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1709-1753.
    19. Baird, Sarah & Hamory Hicks, Joan & Kremer, Michael & Miguel, Edward, 2015. "Worms at work: Long-run impacts of a child health investment," Department of Economics, Working Paper Series qt2rf591xc, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    20. Christopher Blattman & Eric P. Green & Julian Jamison & M. Christian Lehmann & Jeannie Annan, 2016. "The Returns to Microenterprise Support among the Ultrapoor: A Field Experiment in Postwar Uganda," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 35-64, April.
    21. Christopher Blattman & Nathan Fiala & Sebastian Martinez, 2014. "Generating Skilled Self-Employment in Developing Countries: Experimental Evidence from Uganda," The Quarterly Journal of Economics, Oxford University Press, vol. 129(2), pages 697-752.
    22. Kraay, Aart & McKenzie, David, 2014. "Do poverty traps exist ?," Policy Research Working Paper Series 6835, The World Bank.
    23. Abhijit Banerjee & Dean Karlan & Jonathan Zinman, 2015. "Six Randomized Evaluations of Microcredit: Introduction and Further Steps," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 1-21, January.
    24. Paul J. Gertler & Sebastian W. Martinez & Marta Rubio-Codina, 2012. "Investing Cash Transfers to Raise Long-Term Living Standards," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 164-192, January.
    25. Johannes Haushofer & Jeremy Shapiro, 2016. "The Short-term Impact of Unconditional Cash Transfers to the Poor: ExperimentalEvidence from Kenya," The Quarterly Journal of Economics, Oxford University Press, vol. 131(4), pages 1973-2042.
    26. Sarah Baird & Joan Hamory Hicks & Michael Kremer & Edward Miguel, 2016. "Worms at Work: Long-run Impacts of a Child Health Investment," The Quarterly Journal of Economics, Oxford University Press, vol. 131(4), pages 1637-1680.
    27. Blattman, Christopher & Emeriau, Mathilde & Fiala, Nathan, 2018. "Do anti-poverty programs sway voters? Experimental evidence from Uganda," LSE Research Online Documents on Economics 101663, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sedlmayr, Richard & Shah, Anuj & Sulaiman, Munshi, 2020. "Cash-plus: Poverty impacts of alternative transfer-based approaches," Journal of Development Economics, Elsevier, vol. 144(C).
    2. Blimpo, Moussa P. & Pugatch, Todd, 2021. "Entrepreneurship education and teacher training in Rwanda," Journal of Development Economics, Elsevier, vol. 149(C).
    3. Zhou, Lei & Jiang, Bo & Wang, Jingxi, 2020. "Do cash transfers have impacts on student Academic, cognitive, and enrollment outcomes? Evidence from rural China," Children and Youth Services Review, Elsevier, vol. 116(C).
    4. Edmonds, Eric & Theoharides, Caroline, 2020. "The short term impact of a productive asset transfer in families with child labor: Experimental evidence from the Philippines," Journal of Development Economics, Elsevier, vol. 146(C).
    5. Acevedo, Paloma & Cruces, Guillermo & Gertler, Paul & Martinez, Sebastian, 2020. "How vocational education made women better off but left men behind," Labour Economics, Elsevier, vol. 65(C).
    6. Alaref, Jumana & Brodmann, Stefanie & Premand, Patrick, 2020. "The medium-term impact of entrepreneurship education on labor market outcomes: Experimental evidence from university graduates in Tunisia," Labour Economics, Elsevier, vol. 62(C).
    7. Christopher Blattman & Stefan Dercon & Simon Franklin, 2019. "Impacts of Industrial and Entrepreneurial Jobs on Youth: 5-year Experimental Evidence on Factory Job Offers and Cash Grants in Ethiopia," NBER Working Papers 25788, National Bureau of Economic Research, Inc.
    8. Ravallion, Martin, 2019. "Guaranteed employment or guaranteed income?," World Development, Elsevier, vol. 115(C), pages 209-221.
    9. Henderson, Heath & Follett, Lendie, 2020. "A Bayesian framework for estimating human capabilities," World Development, Elsevier, vol. 129(C).
    10. Baird, Sarah & McIntosh, Craig & Özler, Berk, 2019. "When the money runs out: Do cash transfers have sustained effects on human capital accumulation?," Journal of Development Economics, Elsevier, vol. 140(C), pages 169-185.
    11. Marinus, Wytze & Descheemaeker, Katrien K.E. & van de Ven, Gerrie W.J. & Waswa, Wycliffe & Mukalama, John & Vanlauwe, Bernard & Giller, Ken E., 2021. "“That is my farm” – An integrated co-learning approach for whole-farm sustainable intensification in smallholder farming," Agricultural Systems, Elsevier, vol. 188(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kate Ambler & Alan de Brauw & Susan Godlonton, 0. "Cash Transfers and Management Advice for Agriculture: Evidence from Senegal," World Bank Economic Review, World Bank Group, vol. 34(3), pages 597-617.
    2. Blattman, Chris & Fiala, Nathan & Martinez, Sebastian, 2019. "The long term impacts of grants on poverty: 9-year evidence from Uganda’s Youth Opportunities Program," SocArXiv vctuh, Center for Open Science.
    3. Stephen Smith, 2018. "Development Economics Meets the Challenges of Lagging U.S. Areas: Applications to Education, Health and Nutrition, Behavior, and Infrastructure," Working Papers 2018-7, The George Washington University, Institute for International Economic Policy.
    4. Jörg Peters & Jörg Langbein & Gareth Roberts, 2018. "Generalization in the Tropics – Development Policy, Randomized Controlled Trials, and External Validity," World Bank Research Observer, World Bank Group, vol. 33(1), pages 34-64.
    5. Guadalupe Bedoya & Aidan Coville & Johannes Haushofer & Mohammad Isaqzadeh & Jeremy P. Shapiro, 2019. "No Household Left Behind: Afghanistan Targeting the Ultra Poor Impact Evaluation," NBER Working Papers 25981, National Bureau of Economic Research, Inc.
    6. Blattman, Christopher & Dercon, Stefan, 2016. "Occupational choice in early industrializing societies: Experimental evidence on the income and health effects of industrial and entrepreneurial work," CEPR Discussion Papers 11556, C.E.P.R. Discussion Papers.
    7. Baird, Sarah & McIntosh, Craig & Özler, Berk, 2019. "When the money runs out: Do cash transfers have sustained effects on human capital accumulation?," Journal of Development Economics, Elsevier, vol. 140(C), pages 169-185.
    8. Simone Schaner, 2018. "The Persistent Power of Behavioral Change: Long-Run Impacts of Temporary Savings Subsidies for the Poor," American Economic Journal: Applied Economics, American Economic Association, vol. 10(3), pages 67-100, July.
    9. Giambra, Samuele & McKenzie, David, 2021. "Self-employment and migration," World Development, Elsevier, vol. 141(C).
    10. Peters, Jörg & Langbein, Jörg & Roberts, Gareth, 2016. "Policy evaluation, randomized controlled trials, and external validity—A systematic review," Economics Letters, Elsevier, vol. 147(C), pages 51-54.
    11. Fishman, Ram & Smith, Stephen C. & Bobic, Vida & Sulaiman, Munshi, 2019. "Can Agricultural Extension and Input Support Be Discontinued? Evidence from a Randomized Phaseout in Uganda," IZA Discussion Papers 12476, Institute of Labor Economics (IZA).
    12. Carlos Chiapa & Silvia Prina, 2017. "Conditional Cash Transfers and Financial Access: Increasing the Bang for Each Transferred Buck?," Development Policy Review, Overseas Development Institute, vol. 35(1), pages 23-38, January.
    13. Stephen C. Smith & Ram Fishman & Vida BobicÌ & Munshi Sulaiman, 2017. "How Sustainable Are Benefits from Extension for Smallholder Farmers? Evidence from a Randomised Phase-Out of the BRAC Program in Uganda," Working Papers 2017-1, The George Washington University, Institute for International Economic Policy.
    14. Margherita Calderone, 2017. "Are there different spillover effects from cash transfers to men and women? Impacts on investments in education in post-war Uganda," WIDER Working Paper Series 093, World Institute for Development Economic Research (UNU-WIDER).
    15. Zurab Abramishvili & Lasha Lanchava, 2015. "Education for the Poor," CERGE-EI Working Papers wp542, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    16. Johannes; Haushofer & Anett; John & Kate Orkin, 2019. "Can Simple Psychological Interventions Increase Preventive Health Investment?," CSAE Working Paper Series 2019-09, Centre for the Study of African Economies, University of Oxford.
    17. Raza, Wameq A. & Van de Poel, Ellen & Van Ourti, Tom, 2018. "Impact and spill-over effects of an asset transfer program on child undernutrition: Evidence from a randomized control trial in Bangladesh," Journal of Health Economics, Elsevier, vol. 62(C), pages 105-120.
    18. Michael Carter & Rachid Laajaj & Dean Yang, 2019. "Subsidies and the African Green Revolution: Direct Effects and Social Network Spillovers of Randomized Input Subsidies in Mozambique," NBER Working Papers 26208, National Bureau of Economic Research, Inc.
    19. Khazanov, Alexey & Moav, Omer & Neeman, Zvika & Zoabi, Hosny, 2018. "The Microfinance Disappointment: An Explanation based on Risk Aversion," CEPR Discussion Papers 12659, C.E.P.R. Discussion Papers.
    20. Rafael P. Ribas, 2020. "Liquidity constraints, spillovers, and entrepreneurship: evidence from a cash transfer program," Small Business Economics, Springer, vol. 55(4), pages 1131-1158, December.

    More about this item

    Keywords

    employment; poverty; entrepreneurship; cash transfers; occupational choice; Uganda; field experiment; labor market programs; health; education;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:rwirep:802. 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: . General contact details of provider: https://edirc.repec.org/data/rwiesde.html .

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/rwiesde.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.