Publication: Cash or In-Kind Transfers: Do Outcomes Vary According to Transfer Modality?
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2024-06-14
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2024-06-14
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As a part of “Evidence at Your Fingertips Series”, this note summarizes how the transfer modality can affect outcomes based on a literature review of impact evaluations published in the past decade. In general, cash transfers appear to be more effective than in-kind transfers or vouchers at improving a range of outcomes, including decreasing monetary poverty, improving health and nutrition, and increasing food security, across diverse country contexts, program objectives, and design features. However, identifying a superior modality can be challenging due to the heterogeneity in context, program design, and objectives of the studies reviewed, despite evidence generally favoring the effectiveness of cash transfers and acknowledging the enhanced effectiveness of a combination of modalities, referred to as cash plus, in specific cases. For example, in-kind transfers may be preferred when the markets are not functioning, have limited stock, or when programs are designed to influence behaviors, such as consumption patterns, or provide basic needs in the face of crises.
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“World Bank; Innovations for Poverty Action. 2024. Cash or In-Kind Transfers: Do Outcomes Vary According to Transfer Modality?. Social Protection and Jobs Policy and Technical Note; No.32; Evidence at Your Fingertips Series. © World Bank. http://hdl.handle.net/10986/41714 License: CC BY-NC 3.0 IGO.”
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