The Returns to Cash and Microenterprise Support Among the Ultra-Poor: A Field Experiment

A multifaceted program causes lasting progress for the very poor: Evidence from six countries

“…Two other studies of cash transfers and support for self-employment, both in Uganda, find similar results. Blattman et al (22) finds that a program that provided a $150 grant (PPP US$401) towards a nonfarming self-employment activity along with training and follow-up guidance to very poor women in conflict-affected regions increased consumption, cash earnings, labor supply, and non-farm selfemployment. Blattman et al (23) finds that a program that provided both training and support and a cash grant to youth increased business assets by 57%, work hours by 17% and earnings by 38%.…”

“…Blattman et al (23) finds that a program that provided both training and support and a cash grant to youth increased business assets by 57%, work hours by 17% and earnings by 38%. The programs we studied differ from those reported on in (22) and (23) on a few dimensions: choice of sample frame (representative ultra-poor, versus unemployed young men or poor women); the level of intervention (household, versus group-level investments as in (23)); and the integration of other components (health and access to savings). Nevertheless, these studies add to an emerging picture from a variety of countries that these types of programs can be effective.…”

“…In Blattman et al (22), for example, variation between zero and five household visits did not generate, after nine months, large differences in income outcomes (but did lead to higher investment). Furthermore, a meta-analysis of self-employment training programs has found mixed but rarely transformative impacts from training (40).…”