Research Insights: What Are the Effects of Cash Transfer Programs on Vulnerable Middle-Income Households?
Peer Reviewed
Date issued
March 2023
Publication
Subject
Conditional Cash Transfer;
Transfer Program;
Poverty;
Remittance;
Universal Basic Income;
Per Capita Income;
Housing Market;
Education Expenditure;
Coronavirus;
Social Protection;
Housing;
Household Income;
Education;
Bank Loan
JEL code
H55 - Social Security and Public Pensions;
H84 - Disaster Aid;
I15 - Health and Economic Development;
I38 - Government Policy • Provision and Effects of Welfare Programs
Category
Catalogs and Brochures
Monthly cash transfers delivered to vulnerable middle-income households in Colombia increase per capita income, but the effects on spending appear small and related to nonfood spending. Cash transfers have a large impact when beneficiary households experience severe economic shocks, suggesting lack of insurance as a major constraint affecting non-poor but vulnerable households. By encouraging the adoption of digital saving accounts, the program also increased access to formal credit.
