Long-Term Effects of the Targeting the Ultra Poor Program
- American Economic Review: Insights (Forthcoming)
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
10 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 10. One main channel for persistence is that treated
households take better advantage of opportunities to diversify into
more lucrative wage employment, especially through migration.
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