Long-Term Effects of the Targeting the Ultra Poor Program

23 Pages Posted: 16 Nov 2020 Last revised: 18 Mar 2023

See all articles by Abhijit V. Banerjee

Abhijit V. Banerjee

Massachusetts Institute of Technology (MIT) - Department of Economics

Esther Duflo

Massachusetts Institute of Technology (MIT) - Department of Economics; Abdul Latif Jameel Poverty Action Lab (J-PAL); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); Bureau for Research and Economic Analysis of Development (BREAD)

Garima Sharma

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Date Written: November 2020

Abstract

This paper studies the long-run effects of a "big-push" program providing a large asset transfer to the poorest Indian households. In a randomized controlled trial that follows these households over 10 years, we find positive effects on consumption (0.6 SD), food security (0.1 SD), income (0.3 SD), and health (0.2 SD). These effects grow for the first seven years following the transfer and persist until year 10. One main channel for persistence is that treated households take better advantage of opportunities to diversify into more lucrative wage employment, especially through migration.

Suggested Citation

Banerjee, Abhijit V. and Duflo, Esther and Sharma, Garima, Long-Term Effects of the Targeting the Ultra Poor Program (November 2020). NBER Working Paper No. w28074, Available at SSRN: https://ssrn.com/abstract=3731243

Abhijit V. Banerjee (Contact Author)

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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Esther Duflo

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Abdul Latif Jameel Poverty Action Lab (J-PAL) ( email )

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National Bureau of Economic Research (NBER)

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Centre for Economic Policy Research (CEPR)

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Bureau for Research and Economic Analysis of Development (BREAD) ( email )

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Garima Sharma

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

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