Productive Impacts of Cash Transfer and Conditional Cash Transfer Programs in Bangladesh

• Published in: Asian Development Perspectives Vol. 12; no. 1; pp. 46 - 60
• Main Authors: Begum, Ismat Ara, Alam, Mohammad Jahangir, Akter, Shaheen, Haque, Md Mojammel, Rahmatullah, Noor Md
• Format: Journal Article
• Language: English
• Published: Seoul 연세대학교 빈곤문제국제개발연구원 2021; Yonsei University, Institute for Poverty Alleviation and International Development
• Subjects: Beneficiaries; Coping; Durable goods; Elementary education; Expenditures; Food; Housework; Human capital; Policy making; Production; Secondary education; Social programs; Bangladesh; Safety net; Productive impact; Bangladesh; Cash transfer; PSM; Conditional cash transfer
• ISSN: 2635-4659; 2635-4683; 2636-4683
• DOI: 10.22681/ADR2021.12.1.46

This study estimates the productive impacts of four important social safety net programs in Bangladesh. Two are cash transfer programs called old age allowance (OAA) and allowances for the widowed, deserted, and destitute (AWDD) providing cash income support to targeted beneficiaries. The other two are conditional cash transfer (CCT) programs called stipend for primary education (SPE) and stipend for secondary and higher secondary education for female students (SSHE) providing cash support by imposing conditionalities and hence are CCT programs. We measure productive impacts on the beneficiary households using labor allocation, income generating activities, investments in land, durable goods, human capital and coping mechanisms as indicators. We use the HIES 2010 data and the propensity score matching method to estimate impacts. The beneficiaries under OAA, AWDD, SPE and SSHE numbered 485, 203, 444 and 176, respectively. Results show that both conditional and unconditional cash transfer programs had moderate productive impacts, but the impacts were statistically significant only in the case of CCT programs. The average treatment effect on treated (ATT) in SPE was significant for self-employed in off-farm activities, expenditure on durable goods, total credit and non-food expenditure. ATT in SSHE was significant for selfemployed in farm activities, income from crop production, income from livestock production, spending on fertilizer use, total credit and education expenditure. This indicates that the SPE and the SSHE contribute to some productive outcome indicators. Policy makers should design programs taking account of not only the goal of protection but also to the impact on productive capacity.