Macours, KarenPremand, PatrickVakis, Renos2012-04-272012-04-272012-04https://hdl.handle.net/10986/6055While climate change is likely to increase weather risks in many developing countries, there is little evidence on effective policies to facilitate adaptation. This paper presents experimental evidence on a program in rural Nicaragua aimed at improving households' risk-management through income diversification. The intervention targeted agricultural households exposed to weather shocks related to changes in rainfall and temperature patterns. It combined a conditional cash transfer with vocational training or a productive investment grant. The authors identify the relative impact of each complementary package based on randomized assignment, and analyze how impacts vary by exposure to exogenous drought shocks. The results show that both complementary interventions provide full protection against drought shocks two years after the end of the intervention. Households that received the productive investment grant also had higher average consumption levels. The complementary interventions led to diversification of economic activities and better protection from shocks compared to beneficiaries of the basic conditional cash transfer and control households. These results show that combining safety nets with productive interventions can help households manage future weather risks and promote longer-term program impacts.CC BY 3.0 IGOAGRICULTURAL ACTIVITIESAGRICULTURAL PRACTICESAGRICULTURAL PRODUCTIONAGRICULTURAL SEASONAGRICULTURAL WAGEANIMAL PRODUCTIONBENEFICIARIESBENEFICIARYBENEFICIARY GROUPSBENEFICIARY HOUSEHOLDSCARIBBEAN REGIONCASH GRANTSCASH TRANSFERCASH TRANSFER PROGRAMCASH TRANSFER PROGRAMSCASH TRANSFERSCHILD GROWTHCLIMATE CHANGECLIMATIC CHANGECOMMUNITIESCONDITIONAL CASHCONSUMPTION AGGREGATECONSUMPTION DATACONSUMPTION INSURANCECONSUMPTION PER CAPITACONSUMPTION SMOOTHINGCOPING MECHANISMSCOPING STRATEGIESCROP INCOMECROP VARIETIESCROP YIELDCROP YIELDSDESCRIPTIONDROUGHTECONOMIC DEVELOPMENTECONOMIC DIVERSIFICATIONEMPLOYMENT GENERATIONEMPLOYMENT IN AGRICULTUREEXPANSION OF IRRIGATIONEXTENSION AGENTSFARMERSFEMALEFINANCIAL SUPPORTFOOD AIDFOOD CONSUMPTIONFOOD CONSUMPTION PER CAPITAFOOD CROPFOOD CROP PRODUCTIONFOOD CROPSFOOD EXPENDITURESFOOD INSECURITYFOOD ITEMSFOOD PRODUCTSFOOD SECURITYGENDERHEALTH CENTERHEALTH SERVICEHOUSEHOLD HEADHOUSEHOLD HEADSHOUSEHOLD INCOMEHOUSEHOLD LEVELHOUSEHOLD LEVEL DATAHOUSEHOLD SIZEHOUSEHOLD SURVEYHOUSEHOLD WELFAREHOUSEHOLDS WITH CHILDRENHOUSEHOLDS WITH LIVESTOCKHUMAN CAPITALIMPACT OF SHOCKSINCOMEINCOME GAINSINCOME GENERATIONINCOME SHOCKINCOME SMOOTHINGINFORMAL INSURANCEINSURANCEINTERNATIONAL FOOD POLICYINTERVENTIONINTERVENTIONSLABOR DEMANDLABOR MARKETLAND OWNERSHIPLAND VALUELIVESTOCK ACTIVITIESLIVESTOCK ASSETSLIVESTOCK PRODUCTSLIVING STANDARDSMEANS TESTMOBILITYNUTRITIONPER CAPITA CONSUMPTIONPOORPOOR HOUSEHOLDSPOVERTY ALLEVIATIONPOVERTY PERSISTENCEPOVERTY REDUCTIONPRODUCTIVE ASSETSPROGRAM ELIGIBILITYRISK MANAGEMENTRURALRURAL HOUSEHOLDSRURAL POVERTYSAFETYSAFETY NETSAFETY NETSSAVINGSSCHOOL ENROLLMENTSELF-EMPLOYMENTSHOCKSKILLS TRAININGSOCIAL POLICYSOCIAL PROTECTIONSOCIAL SAFETY NETSSUBSIDIZINGSUBSISTENCESUBSISTENCE CROPSSUPPORT PROGRAMTARGETINGTECHNICAL ASSISTANCETRANSACTION COSTSTRANSFER PROGRAMTRANSFERS OF CASHVOCATIONAL TRAININGWAGE EMPLOYMENTWAGE WORKWEATHER INSURANCEWEATHER RISKWEATHER RISKSWEATHER SHOCKSWHEAT PRODUCTIONYOUTHWorld Bank10.1596/1813-9450-6053