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SOCIAL
SOCIALPROTECTIONJOBS|POLICYTECHNICALNOTEMARCH2024|No.31
EvidenceatYourFingertipsSeries
CashTransferSize:HowMuch
Public
PublicDisclosureAuthorized
KeyMessages
1.Recentdataunderscorespreviousfindingsthathigh-andlow-valuetransfersbothincreasehouseholdconsumptionandhavethepotentialtoincreaseassetaccumulationandsavings.Whencomparingtwotransfers,thehigherrelativevaluetransfertypicallyproducesgreaterimpactsoneconomicindicatorssuchasinvestmentaswellasconsumptionandfoodsecurity.
2.Higher-valuelumpsumtransfersmayallowhouseholdstoinvestorsavemorethanlower-valuecumulativetransfers.Thevalueofthetransfercaninfluencethechoiceofinvestment,withhigherlumpsumtransfersenablinglarger,long-terminvestmentsandlowervaluetransfersenablingsmaller,short-terminvestments.
3.Lower-valuetransferscanbevaluable.Eventhoselessthan10percentofaverageannualincome
orconsumptionpercapitahavemeasurableimpacts,particularlywhenaccompaniedbybehaviorchangecommunicationmessagestoimprovehealth,nutrition,andeducationoutcomes.
4.Cashtransfersoffergreateragencyovertime-usedecisions.Theydonotnecessarilydiscourageworkbutofferthepossibilityofsubstitutingwageworkforcare,self-employment,andeducationforchildren.
5.High-valuetransfersandcumulativelow-valuetransferscanbothoffsettheassociatedcostsofseekingandachievinghealthandnutritionoutcomesiftheyareproportionaltokeycostfactorssuchasthecostoftraveltotheclinicorpurchaseofadiversefoodbasketandifaccompaniedbymessagingorconditionalitiesinthecaseof
Public
PublicDisclosureAuthorized
WORLDBANKGROUPlInnovationsfor
WORLDBANKGROUP
l
Innovationsforpo
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