Margherita Calderone (Università di Torino)

"The Intergenerational Effects of Cash Transfers to Groups of Men and Women: Evidence from Northern Uganda"

5 March 2018, 12:45 pm

abstract

This paper looks at the intergenerational effects of a cash transfer, the Youth Opportunities Program (YOP), on human capital investments in children in conflict-affected Northern Uganda. The YOP was primarily aimed at providing startup money to groups of underemployed youth, while working in practice similar to an unconditional cash transfer. It kept a gender balance by mandating that groups contained at least a third of women. Overall, the intervention had a significant impact on education-related expenditures for children and young household members, increasing them by 12-15 percent, US$ 17-23, in the shorter and longer term (i.e. after two and four years). However, the educational expenditures of women in the treatment group did not increase. Female recipients seem to have not spent more on education, at least in part, because of redistributive pressures, such as probable financial requests from other members of their YOP group. These findings should be relevant for future designs of group eligibility rules and for targeting of cash transfers.