Beneficiary Views on Cash and In-Kind Payments : Evidence from Ethiopia's Productive Safety Net Program

Economists often default to the assumption that cash is always preferable to an in-kind transfer. Do beneficiaries feel the same way? This paper addresses this issue using longitudinal household data from Ethiopia where a large-scale social safety...

Full description

Bibliographic Details
Main Authors: Hirvonen, Kalle, Hoddinott, John
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/568961580228524626/Beneficiary-Views-on-Cash-and-In-Kind-Payments-Evidence-from-Ethiopias-Productive-Safety
http://hdl.handle.net/10986/33261
id okr-10986-33261
recordtype oai_dc
spelling okr-10986-332612022-09-20T00:13:22Z Beneficiary Views on Cash and In-Kind Payments : Evidence from Ethiopia's Productive Safety Net Program Hirvonen, Kalle Hoddinott, John SOCIAL PROTECTION FOOD AID CASH TRANSFERS SAFETY NETS Economists often default to the assumption that cash is always preferable to an in-kind transfer. Do beneficiaries feel the same way? This paper addresses this issue using longitudinal household data from Ethiopia where a large-scale social safety net intervention (PSNP) operates. Even though most payments are made in cash, and even though the (temporal) transaction costs associated with food payments are higher than payments received as cash, most beneficiaries stated that they prefer their payments only or partly in food. Higher food prices induce shifts in stated preferences towards in-kind transfers. More food secure households, those closer to food markets and to financial services are more likely to prefer cash. Though shifts occur, the stated preference for food is dominant: In no year do more than 17 percent of households prefer only cash. There is suggestive evidence that stated preferences for food are also driven by self-control concerns. 2020-01-30T19:57:34Z 2020-01-30T19:57:34Z 2020-01 Working Paper http://documents.worldbank.org/curated/en/568961580228524626/Beneficiary-Views-on-Cash-and-In-Kind-Payments-Evidence-from-Ethiopias-Productive-Safety http://hdl.handle.net/10986/33261 English Policy Research Working Paper;No. 9125 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Ethiopia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic SOCIAL PROTECTION
FOOD AID
CASH TRANSFERS
SAFETY NETS
spellingShingle SOCIAL PROTECTION
FOOD AID
CASH TRANSFERS
SAFETY NETS
Hirvonen, Kalle
Hoddinott, John
Beneficiary Views on Cash and In-Kind Payments : Evidence from Ethiopia's Productive Safety Net Program
geographic_facet Africa
Ethiopia
relation Policy Research Working Paper;No. 9125
description Economists often default to the assumption that cash is always preferable to an in-kind transfer. Do beneficiaries feel the same way? This paper addresses this issue using longitudinal household data from Ethiopia where a large-scale social safety net intervention (PSNP) operates. Even though most payments are made in cash, and even though the (temporal) transaction costs associated with food payments are higher than payments received as cash, most beneficiaries stated that they prefer their payments only or partly in food. Higher food prices induce shifts in stated preferences towards in-kind transfers. More food secure households, those closer to food markets and to financial services are more likely to prefer cash. Though shifts occur, the stated preference for food is dominant: In no year do more than 17 percent of households prefer only cash. There is suggestive evidence that stated preferences for food are also driven by self-control concerns.
format Working Paper
author Hirvonen, Kalle
Hoddinott, John
author_facet Hirvonen, Kalle
Hoddinott, John
author_sort Hirvonen, Kalle
title Beneficiary Views on Cash and In-Kind Payments : Evidence from Ethiopia's Productive Safety Net Program
title_short Beneficiary Views on Cash and In-Kind Payments : Evidence from Ethiopia's Productive Safety Net Program
title_full Beneficiary Views on Cash and In-Kind Payments : Evidence from Ethiopia's Productive Safety Net Program
title_fullStr Beneficiary Views on Cash and In-Kind Payments : Evidence from Ethiopia's Productive Safety Net Program
title_full_unstemmed Beneficiary Views on Cash and In-Kind Payments : Evidence from Ethiopia's Productive Safety Net Program
title_sort beneficiary views on cash and in-kind payments : evidence from ethiopia's productive safety net program
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/568961580228524626/Beneficiary-Views-on-Cash-and-In-Kind-Payments-Evidence-from-Ethiopias-Productive-Safety
http://hdl.handle.net/10986/33261
_version_ 1764478344507686912