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New Study Finds Cash Alone Effective Way to Fight Poverty Image

Promoting Inclusive Markets and Financial Systems

New Study Finds Cash Alone Effective Way to Fight Poverty

Summary

Business owners were randomly selected to receive loans, cash grants, business training or a combination of these. Six months after the programs there is an increase in missed school for household children, consistent with men demanding family support. Women may have initially shifted consumption to replace money lost from increased demands on money from the family. Effects on missed school and household consumption have disappeared by the 9 month follow-up. Children are no longer being pulled out of school to work in the business. Nonetheless, the programs, despite increasing profits for men in the loan and training program, do not appear to increase household consumption.



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