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The targeting effectiveness of social transfers

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  • Stephen Devereux
  • Edoardo Masset
  • Rachel Sabates-Wheeler
  • Michael Samson
  • Althea-Maria Rivas
  • Dolf te Lintelo

Abstract

Many methodologies exist for dividing a population into those who are classified as eligible for social transfers and those who are ineligible. Popular targeting mechanisms include means tests, proxy means tests, categorical, geographic, community-based and self-selection. This paper reviews empirical evidence from a range of social protection programmes on the accuracy of these mechanisms, in terms of minimising four targeting errors: inclusion and exclusion, by eligibility and by poverty. This paper also reviews available evidence on the various costs associated with targeting, not only administrative but also private, social, psycho-social, incentive-based and political costs. Comparisons are difficult, but all mechanisms generate targeting errors and costs. Given the inevitability of trade-offs, there is no ‘best’ mechanism for targeting social transfers. The key determinant of relative accuracy and cost-effectiveness in each case is how well the targeting mechanism is designed and implemented.

Suggested Citation

  • Stephen Devereux & Edoardo Masset & Rachel Sabates-Wheeler & Michael Samson & Althea-Maria Rivas & Dolf te Lintelo, 2017. "The targeting effectiveness of social transfers," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 9(2), pages 162-211, April.
    • Handle: RePEc:taf:jdevef:v:9:y:2017:i:2:p:162-211
    DOI: 10.1080/19439342.2017.1305981
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    References listed on IDEAS

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