Backed by research
Unconditional cash transfers are among the best-researched measures for fighting poverty. Large studies show their impact in many areas of life.
What does the research say?
Large-scale studies by the Overseas Development Institute (ODI) identified the following six core effects of cash transfers (Hagen-Zanker et al., 2016).
Poverty reduction and livelihoods
Direct cash transfers help meet the immediate needs of poor households and improve their livelihoods.
Better educational opportunities
Families can more easily afford school fees and school materials, leading to higher enrolment and lower drop-out rates.
Better healthcare
Enables access to health services and medicines, improves dietary diversity and reduces malnutrition.
Economic empowerment
Strengthens economic resilience through starting small businesses or expanding farming activities.
Less child labour
Families can afford to send their children to school, which significantly improves their long-term prospects.
Empowerment of women
Strengthens women's emancipation and autonomy through greater decision-making power and reduced dependency.
Scientific literature
- [1]
Bastagli, F., Hagen-Zanker, J., Harman, L., Barca, V., Sturge, G., Schmidt, T., & Pellerano, L. (2016). Cash transfers: What does the evidence say? A rigorous review of programme impact and of the role of design and implementation features. Overseas Development Institute.
- [2]
Blattman, C., Fiala, N., & Martinez, S. (2019). The long-term impacts of grants on poverty: 9-year evidence from Uganda's Youth Opportunities Program. University of Connecticut, Makerere University, and RWI – Leibniz Institute for Economic Research.
- [3]
Daidone, S., Davis, B., Handa, S., & Winters, P. (2019). The household and individual-level productive impacts of cash transfer programs in Sub-Saharan Africa. American Journal of Agricultural Economics, 101(5), 1401–1431. https://doi.org/10.1093/ajae/aay113
- [4]
Department for International Development (DFID) & UKaid. (2011). Cash Transfers Evidence Paper.
- [5]
Evans, D. K., & Popova, A. (2017). Cash Transfers and Temptation Goods. Economic Development and Cultural Change, 65(2). https://doi.org/10.1086/689575
- [6]
Give Directly (2020). Research on cash transfers. https://www.givedirectly.org/research-on-cash-transfers/
- [7]
Hagen-Zanker, J., Bastagli, F., Harman, L., Barca, V., Sturge, G., & Schmidt, T. (2016). Understanding the impact of cash transfers: The evidence. Overseas Development Institute. https://www.odi.org
- [8]
Hagen-Zanker, J., Pellerano, L., Bastagli, F., Harman, L., Barca, V., Sturge, G., Schmidt, T., & Laing, C. (2017). The impact of cash transfers on women and girls: A summary of the evidence. Overseas Development Institute. https://www.odi.org