Debunking the Stereotype of the Lazy Welfare Recipient: Evidence from Cash Transfer Programs Worldwide


By: Banerjee, Abhijit (MIT) ; Hanna, Rema (Harvard University) ; Kreindler, Gabriel (MIT) ; Olken, Benjamin A. (MIT)
Targeted transfer programs for poor citizens have become increasingly common in the developing world. Yet, a common concern among policy makers – both in developing as well as developed countries – is that such programs tend to discourage work. We re-analyze the data from 7 randomized controlled trials of government-run cash transfer programs in six developing countries throughout the world, and find no systematic evidence that cash transfer programs discourage work.



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