American Economic Review: Insights
ISSN 2640-205X (Print) | ISSN 2640-2068 (Online)
Long-Term Effects of the Targeting the Ultra Poor Program
American Economic Review: Insights
vol. 3,
no. 4, December 2021
(pp. 471–86)
Abstract
This paper studies the long-run effects of a "big-push" program providing a large asset transfer to the poorest Indian households. In a randomized controlled trial that follows these households over ten years, we find positive effects on consumption (0.6 SD), food security (0.1 SD), income (0.3 SD), and health (0.2 SD). These effects grow for the first seven years following the transfer and persist until year ten. One main channel for persistence is that treated households take better advantage of opportunities to diversify into more lucrative wage employment, especially through migration.Citation
Banerjee, Abhijit, Esther Duflo, and Garima Sharma. 2021. "Long-Term Effects of the Targeting the Ultra Poor Program." American Economic Review: Insights 3 (4): 471–86. DOI: 10.1257/aeri.20200667Additional Materials
JEL Classification
- I32 Measurement and Analysis of Poverty
- I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
- J22 Time Allocation and Labor Supply
- J31 Wage Level and Structure; Wage Differentials
- O12 Microeconomic Analyses of Economic Development
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure