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Here's the conclusion: V. CONCLUSION In recent years, there has been a large growth in safety net programs across the developing world. If anything, we might e
by talloaktrees 11y ago
Here's the conclusion:
V. CONCLUSION
In recent years, there has been a large growth in safety net programs across the developing
world. If anything, we might expect this trend to increase as countries become richer: Chetty
and Looney (2006) show that social insurance as a fraction of GDP rises as countries get richer,
suggesting an that safety nets may be increasingly important as countries grow.
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As safety nets have increased, so has the debate about whether they simply discourage
work, enabling a “lazy poor.” Aggregating evidence from randomized evaluations of seven cash
transfer programs, we find no effects of transfers on work behavior, either for men or women.
Moreover, a 2014 review of transfer programs worldwide by Evans and Popova also show no
evidence—despite claims in the policy debate—that the transfers induce increases in spending
on temptation goods, such alcohol and tobacco. Thus, on net, the available evidence implies cash
transfer programs do not induce the “bad” behaviors that are often attributed to them in the
policy space.