Blattman, Fiala, and Martinez (2018), which examines the nine-year effects of a group-based cash grant program for unemployed youth to start individual enterprises in skilled trades in Northern Uganda, was released today. Those of you well versed in the topic will remember Blattman et al. (2014), which summarized the impacts from the four-year follow-up. That paper found large earnings gains and capital stock increases among those young, unemployed individuals, who formed groups, proposed to form enterprises in skilled trades, and were selected to receive the approximately $400/per person lump-sum grants (in 2008 USD using market exchange rates) on offer from the Northern Uganda Social Action Funds (NUSAF). I figured that a summary of the paper that goes into some minutiae might be helpful for those of you who will not read it carefully – despite your best intentions. I had an early look at the paper because the authors kindly sent it to me for comments.
Many education investments focus on the first years of primary education or – even before that – early child education. The logic behind this is intuitive: Without a solid foundation, it’s hard for children and youth to gain later skills that use those foundations. If you can’t decipher letters, then it’s going to be tough to learn from a science textbook. Or even a math textbook. But it’s important to remember that for most “investors” (whether governments or parents or the children themselves), the most basic skills aren’t the ultimate goal. The objective is better life outcomes. Most of the justification for these early interventions are that they will translate into better lives once these children grow up.
Cash transfers seem to be everywhere. A recent statistic suggests that 130 low- and middle-income countries have an unconditional cash transfer program, and 63 have a conditional cash transfer program. We know that cash transfers do good things: the children of beneficiaries have better access to health and education services (and in some cases, better outcomes), and there is some evidence of positive longer run impacts. (There is also some evidence that long-term impacts are quite modest, and even mixed evidence within one study, so the jury’s still out on that one.)
In our conversations with government about cash transfers, one of the concerns that arose was how they would affect the social fabric. Might cash transfers negatively affect how citizens interact with each other, or with their government? In our new paper, “Cash Transfers Increase Trust in Local Government” (can you guess the finding from the title?) – which we authored together with Brian Holtemeyer – we provide evidence from Tanzania that cash transfers increase the trust that citizens have in government. They may even help governments work a little bit better.
Business plan competitions have increasingly become one policy option used to identify and support high-growth potential businesses. For example, the World Bank has helped design and support these programs in a number of sub-Saharan African countries, including Côte d’Ivoire, Gabon, Guinea-Bissau, Kenya, Nigeria, Rwanda, Senegal, Somalia, South Sudan, Tanzania, and Uganda. These competitions often attract large numbers of applications, raising the question of how do you identify which business owners are most likely to succeed?
In a recent working paper, Dario Sansone and I compare three different approaches to answering this question, in the context of Nigeria’s YouWiN! program. Nigerians aged 18 to 40 could apply with either a new or existing business. The first year of this program attracted almost 24,000 applications, and the third year over 100,000 applications. After a preliminary screening and scoring, the top 6,000 were invited to a 4-day business plan training workshop, and then could submit business plans, with 1,200 winners each chosen to receive an average of US$50,000 each. We use data from the first year of this program, together with follow-up surveys over three years, to determine how well different approaches would do in predicting which entrants will have the most successful businesses.
This post is joint with Niklas Buehren and Muthoni Ngatia
You can find the entire conference schedule here. In the summaries below we link to papers and videos (where applicable).
Over the last decade, both Kenya and Liberia have sought to scale up successful pilot programs that help children to learn to read. Even as more and more impact evaluations are of programs at scale, pilots still constitute a significant portion of what we test. That’s with good reason: Governments wisely seek to pilot and test programs before expending valuable resources in implementing a program across the country. Last year, I wrote about how the Indian organization Pratham worked with J-PAL to test effective programs to improve reading iteratively, varying different parameters in terms of who was implementing (government teachers versus volunteers) and when (in-school versus during the holidays).