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Beneficiary Views on Cash and In-Kind Payments : Evidence from Ethiopia's Productive Safety Net Programme
Authors: --- ---
Year: 2020 Publisher: Washington, D.C. : The World Bank,

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Abstract

Economists often default to the assumption that cash is always preferable to an in-kind transfer. Do beneficiaries feel the same way? This paper addresses this issue using longitudinal household data from Ethiopia where a large-scale social safety net intervention (PSNP) operates. Even though most payments are made in cash, and even though the (temporal) transaction costs associated with food payments are higher than payments received as cash, most beneficiaries stated that they prefer their payments only or partly in food. Higher food prices induce shifts in stated preferences towards in-kind transfers. More food secure households, those closer to food markets and to financial services are more likely to prefer cash. Though shifts occur, the stated preference for food is dominant: In no year do more than 17 percent of households prefer only cash. There is suggestive evidence that stated preferences for food are also driven by self-control concerns.


Book
COVID-19 and Food Security in Ethiopia : Do Social Protection Programs Protect?
Authors: --- --- ---
Year: 2020 Publisher: Washington, D.C. : The World Bank,

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This paper assesses the impact of Ethiopia's flagship social protection program, the Productive Safety Net Program on the adverse impacts of the COVID-19 pandemic on the food and nutrition security of households, mothers, and children. The analysis uses pre-pandemic, in-person household survey data and a post-pandemic phone survey. Two-thirds of the respondents reported that their incomes had fallen after the pandemic began, and almost half reported that their ability to satisfy their food needs had worsened. Employing a household fixed effects difference-in-difference approach, the study finds that household food insecurity increased by 11.7 percentage points and the size of the food gap by 0.47 months in the aftermath of the onset of the pandemic. Participation in the Productive Safety Net Program offsets virtually all of this adverse change - the likelihood of becoming food insecure increased by only 2.4 percentage points for Productive Safety Net Program households and the duration of the food gap increased by only 0.13 month. The protective role of the program is greater for poorer households and those living in remote areas. The results are robust to various definitions of program participation, different estimators, and different ways of accounting for the non-randomness of mobile phone ownership. Productive Safety Net Program participants were less likely to reduce expenditures on health and education by 7.7 percentage points and less likely to reduce expenditures on agricultural inputs by 13 percentage points. By contrast, mothers' and children's diets changed little, despite some changes in the composition of diets, with consumption of animal source foods declining significantly.

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