Wednesday, July 13, 2022

How can we improve cash-grants to poor people?

There is a lot of enthusiasm, on both the left and the right, for cash grants or a universal basic income, as they benefit recipients directly, and dont create a huge bureaucracy of people who would lose their jobs if they moved people out of poverty (perverse incentives!). 

However, as the randomized control trial in Niger shows, they could do better by "adding 'psychosocial' elements–'life skills training' or 'community sensitization on aspirations and social norms'–to anti-poverty programs."

HT:  Tyler Cowen at Marginal Revolution

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