Randomized trial demonstrates improved financial health and food access in impoverished households receiving cash transfers, indicating emergency aid bolsters welfare and civic cooperation.
We study the impact of money on households during the COVID-19 pandemic. In March 2020, Colombia rolled out a new unconditional cash transfer (UCT) to 1 million households in poverty worth US$19 (PPP US$55.6) and paid every five to eight weeks. Using a randomized control trial and linked administrative and survey data, we find the UCT had positive (albeit modest) effects on measures of household well-being (e.g., financial health, food access). Moreover, the UCT boosted support for emergency assistance to households and firms during the crisis and promoted social cooperation. Finally, we explore the bottlenecks in expanding mobile money during a pandemic.
No takes yet. Share an insight, caveat, or question.
Londoño-Vélez et al. (2021) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: