Syndicate content

unconditional cash transfers; GiveDirectly

GiveDirectly Three-Year Impacts, Explained by the Authors

This is a guest post by Johannes Haushofer and Jeremy Shapiro

[Update: 11:00 AM on 4/23/2018. Upon the request of the guest bloggers, this post has been updated to include GiveDirectly's updated blog post, published on their website on 4/20/2018, within the text of their post rather than within Özler’s response that follows.]

We’re glad our paper evaluating the long-term impacts of cash transfers has been discussed by GiveDirectly (the source of the transfers) itself and Berk Özler at the World Bank, among others (GiveDirectly has since updated their take on our paper). Given the different perspectives put forth, we wanted to share a few clarifications and our view of the big picture implications.

GiveDirectly Three-Year Impacts, Explained

Berk Ozler's picture

My post earlier this week on dissipating effects of cash transfers on adults in beneficiary households has caused not only a fair amount of disturbance in the development community, but also a decent amount of confusion about the three-year impacts of GiveDirectly’s cash transfers, from a working paper by Haushofer and Shapiro (2018) – HS (18) from hereon. At least some, including GiveDirectly itself and some academics, seem to think that one can reasonably interpret the findings in HS (18) to imply that the short-term effects of GD, also by Haushofer and Shapiro (2016) – HS (16) from hereon – were sustained three years post treatment. Below, I try to clear up the confusion regarding the evidence and explain why I vigorously disagree with that interpretation.