Opportunity and Resilience: Do Public Works Have it All? Evidence from a randomized evaluation in Sierra Leone Nina Rosas1 and Shwetlena Sabarwal2 Abstract Given the increased reliance on Public Works (PW) programs, especially in fragile and postconflict settings, this paper examines whether such programs can go beyond mere income stabilization and provide households with pathways out of poverty and underemployment. To do this we assess the very short-term impacts of a PW program in Sierra Leone targeted at youth in response to the global food, fuel, and financial crises. Using a randomized phased-in approach we find that the program successfully reached youth with low levels of education who were mostly working in the agricultural sector. As a result of program participation, household monthly income increases by 26 percent. Further, the program appears to have been a highly productive safety net. Program participation significantly increased the likelihood of enterprise creation and investments in homes and, in some cases, existing businesses. Positive impacts are also observed on beneficiary households’ asset accumulation in terms of small livestock assets. In addition, program participation impacted human capital through increased utilization of health services. Impacts were much stronger for households facing greater constraints to economic opportunity at baseline, i.e. households in rural areas and households with low education levels. These results demonstrate that public works have considerable potential as ‘productive’ safety nets in post-conflict settings; they can provide not just immediate income support during adverse economic shocks but also open avenues for investments in the productive capacity of poor households. JEL Classification: H53, I31, I38, O15 Keywords: Public works, safety nets, social protection, impact evaluation, Sierra Leone Acknowledgements: This work has been done in collaboration with Sierra Leone’s National Commission for Social Action and the Ministry of Finance and Economic Development’s Integrated Project Administration Unit. We thank Statistics Sierra Leone, who conducted the data collection, and the impact evaluation field coordinators Samantha Zaldívar and Joshua McCann, for ensuring high quality data. The paper benefited from support and guidance from Suleiman Namara and John Van Dyck. We thank Deon Filmer and Patrick Premand for discussions and comments that improved the paper. 1 2 Social Protection Specialist, World Bank, email: [email protected] Senior Economist, World Bank, email: [email protected] 1 I. Introduction Within the anti-poverty toolkit, public works (PW) are currently in fashion. The World Bank funded public-works programs in 24 countries between 2007 and 2009, and a number of governments have introduced their own initiatives (Zimmerman 2013). This popularity reflects a growing recognition of the development potential of such programs. In particular, PWs seem to have evolved into flexible instruments that can be fashioned to serve multiple objectives including providing safety nets while also expanding economic opportunities. Often, the choice in favor PWs as opposed to other, cheaper, anti-poverty instruments rests on precisely the justification that they can both reduce poverty while contributing to growth. But is this optimism justified? Can PWs really do it all? A recent review (Subbarao et al 2013) lists four major ways in which PWs are being used: (i) mitigation of covariate shocks; (ii) mitigation of idiosyncratic shocks in response to a temporary or structural job crisis; (iii) as a bridge to more permanent employment; and (iv) poverty relief. As this list suggests, PWs can, at least theoretically, be deployed both for creating resilience against shocks and for generating opportunities to escape poverty and underemployment. The use of PWs as something more ambitious than mere crisis response marks a shift in their perceived role in public policy3. The theoretical underpinnings of this shift are straightforward. To the extent that PW programs provide additional sources of employment and income for the underemployed, even in the absence of adverse shocks, they help generate larger and more predictable incomes for the poor. By doing this, such programs can directly and positively impact household welfare through increased consumption, increased investment in human capital, increased investment in productive assets, and expanded opportunities to engage in higher risk, higher return activities. These programs therefore have the potential to facilitate transitions from low to higher productivity activities among poor households. However, empirical evidence around these theorized multi-faceted impacts is limited. While there are a handful of studies that show positive impacts of PWs on household income and expenditures, direct evidence on their productive potential is extremely limited4. Given signs of growing adoption and the ambitious scope of some recent programs,5 this absence of clear empirical evidence – on PWs hypothesized productive impacts beyond mere income support – is a matter of urgent concern, especially since these programs are costly. Not only does their execution require significant administrative effort which can be a strain on government capacity especially in developing countries, they can also potentially have distortionary impacts on local labor markets. Further, the credibility of such programs can be low given the scope for corruption and mismanagement if not designed and implemented properly. Therefore, now more than ever, it is important to understand whether PWs are a good public policy choice for fiscally strapped developing countries. The use of PWs demands caution – used well they have the potential to transform lives but used badly they can potentially lead to tremendous waste of public resources. See Zimmerman (2013) for broader discussion. See Subbarao et al (2013) for a comprehensive review of evaluations of Public Works programs. 5 One example is India's Mahatma Gandhi National Rural Employment Guarantee scheme which is reaching approximately 56 million households. 3 4 2 This paper contributes to this critical area of inquiry. We provide rigorous evidence on how precisely PWs impact household welfare on a number of dimensions in the very short run. Specifically, we examine the short-term causal impacts of a PW program in Sierra Leone on household welfare – with a particular focus on how participation impacts household consumption, access to services, and investments in productive assets. Evaluating the causal impacts of PWs in a post-conflict setting like Sierra Leone is another important contribution of this paper. PWs are considered particularly suited for post-conflict and other fragile contexts. This is because they can provide immediate short-term employment to poor households, which have most likely faced tremendous deprivation during the conflict. This employment also helps address youth unemployment and ex-combatant reintegration, which represent pressing concerns for post-conflict recovery. An added bonus is that PW projects can be designed to rebuild infrastructure damaged during the conflict. Due to these features, PW programs have been quickly launched and scaled up following conflicts in GuineaBissau, Liberia, Rwanda, and Sudan. In Nepal, which recently emerged from a decade long internal conflict, a national public works program is now being designed (Subbarao et al 2013). However, once again, the evidence of the effectiveness of PW programs in post-conflict settings is extremely limited This is an issue given that such programs are a costly gamble for countries in the middle of post-conflict reconstruction. Also, these programs could overstretch the already weak institutional capacity in these countries with effective delivery being an important concern against a backdrop of poor governance, political instability, and potential for a return to civil unrest. Another major contribution of this work is the use – for the first time to our knowledge – of a randomized control trial approach to rigorously measure the causal impacts of a large PW program. It has been argued that evaluations of PWs have often lacked credible identification of causal impacts (Zimmerman 2013). Most existing evaluations rely on non-experimental – and in some cases – quasi experimental methods. In contrast, we exploit the phase-in design of a large PW program to randomize targeted communities into control and treatment groups to measure the causal impacts of the program in the 3-4 months following program delivery in treatment communities and before program initiation in control communities. We find that in the very short run PW programs implemented in a post-conflict setting can have dramatic welfare impacts for households, especially those with constrained economic opportunities. As expected, the impacts stem from strong increases in household economic activity, but these increases go beyond mere program participation effects. Participation in the PWs appears to have a multiplier effect within the household and crowds-in labor market work for non-participating household members. These enhanced levels of economic activity are also reflected in higher rates of female labor force participation and migration (both in and out) in treated households. All of this translates into higher household incomes for treated households – on average, the total value of reported cash and in-kind payments received by household for work in the previous month increases by 26 percent. This increased income has implications for household consumption, savings, and investment patterns. Households use at least part of the increased income to improve their quality of life by spending more on welfare enhancing goods and services. Treated households increase their consumption in important categories like food and hygiene products. Expenditure on welfare 3 enhancing services, particularly health services also increases. Treated households reported more frequent visits to health facilities and increased spending on drugs and medications. A key result of the paper relates to evidence on the productive potential of PW programs. These households exhibit significantly higher investments in home improvement and existing businesses. They also invest more in small livestock assets. However, the biggest boost to poor households’ productive potential comes from new businesses. Treated households are nearly four times more likely to set up a new household enterprise than control households. Taken together, these results show that PWs can successfully boost economic opportunities for beneficiary households. One critical finding of the paper is that PW impacts are almost entirely confined to households in rural areas and with low education. In many ways this is intuitive – these programs are typically designed to benefit households that rely predominantly on casual labor for income and experience seasonal shocks. The remaining paper is organized as follows. Section II provides an overview of the Sierra Leone Cash for Work (CfW) program; Section III describes the evaluation methodology, including a description of data sources. Section IV provides descriptive analysis, Section V presents the main results of the evaluation, and Section VI concludes. II. Program Design and Implementation In 2010, the Government of Sierra Leone launched the Youth Employment Support Project (YESP) with support from the World Bank. The project included a labor-intensive public works component, known as the Cash-for-Work (CfW) program, whose objective was to provide additional income and temporary employment opportunities to vulnerable youth in the country. The CfW program was targeted at individuals in the age group 15 through 35 in poor and vulnerable communities. Program beneficiaries were selected through a three-stage process: (i) geographical targeting6 to identify the beneficiary communities, (ii) submission of requests by communities to receive program funds for a sub-project7, and (iii) community-based targeting to identify beneficiary households within selected communities. The National Commission for Social Action (NaCSA), which is a semi-autonomous government agency, had the overall responsibility for implementation of the program. At the local level, the program was implemented by independent contractors hired by NaCSA. These contractors were responsible for managing the day-to-day implementation of the sub-project, including procuring necessary materials and other inputs, recording attendance of workers, and making payments to beneficiaries for days worked. For targeting of individuals within communities, Community Oversight Committees (COCs) were set up. These COCs were responsible for identifying the poorest households with at least one member willing and able to work between the ages of 15-35 years. COCs relied on local Geographic targeting was undertaken based on poverty and food-security estimates The communities are given a list, or positive menu, of eligible sub-project types, namely: (i) feeder road rehabilitation and maintenance; (ii) agriculture; and (iii) renewable energy and environmental mitigation. A subset of communities submitting requests are then selected based on whether the subproject requested conforms to several requirements, including being on the positive list, suitability of the sub-project for the locality, and community endorsement. 6 7 4 definitions of poverty for selecting beneficiaries. The COCs, were also tasked with monitoring the progress of works and payments and resolving CfW-related disputes. The wage rate within the program was set lower than the market wage to discourage non-poor applicants from participating. The wage rate was 7,500 Leones, which was equivalent to approximately US$1.8 at the time of the evaluation in 2012. On average, 60 percent of subprojects costs were allocated toward payment of wages, while the remaining 40 percent covered contractor fees, materials to implement the works, and administrative costs. In addition to these costs, NaCSA incurred operational costs of 10 to 15 percent of sub-project costs for implementation support and monitoring. Program roll-out took place through a randomized phase-in strategy. In early 2012, 276 communities were identified as potential recipients of the CfW intervention8. These were randomly divided into two groups: a treatment group (143 communities) which was scheduled to receive the CfW program during the evaluation period (April-Aug, 2012) and a control group (133 communities) which receive the program during the evaluation period. As per the phasein, the control group was scheduled to receive the program about four months after the treatment group. The design is summarized in Figure 1. One key feature of program implementation was the practice of rotation. It is not uncommon for PW programs in Sierra Leone (and elsewhere) to impose ‘rotation’ informally. This is based on the principle that every eligible and willing individual in the community should have an opportunity to participate in the program. According to Subbarao et al (2013), rotation systems are extremely common in PW implementation across the world, wherever demand for employment exceeds the opportunities created, to give the largest number of poor people a chance to work. This system plays an especially crucial role in post-conflict settings, where considerations of fairness are central concerns within program implementation. However, rotation is often imposed in an informal and ad-hoc fashion – which makes it difficult to measure and document. Also, if not incorporated adequately into operational procedures, rotation can increase the risk of leakages. III. Empirical strategy and Data A. Empirical Strategy Given the randomized phase-in of the program, we rely on a phased-in randomized control trial (RCT) methodology to establish causal impacts of the CfW program. The advantage of phased-in RCT design is that a simple comparison of outcomes for the two randomly created groups yields an unbiased estimate of the impact of the CfW program. As mentioned earlier, the overall evaluation sample comes from 276 communities – 143 treatment and 133 control. The population for the study includes 17,608 beneficiary households (8,944 in the treatment group and 8,664 in the control). Note however that because control communities received the program approximately four months after the treatment communities, therefore, the evaluation allows us to examine the impacts of the program only in the very short-run (approximately three-four months). The overall CfW program included 470 sub-projects over four wavess, with 108, 143, 133, and 86 subprojects in the first, second, third, and fourth waves, respectively. Randomized phase-in was carried out over the second and third waves of the program; as such, the discussion in this paper refers to those two rounds only. 8 5 In analyzing program impacts we undertake two sets of analysis. First, since all the surveyed households had been selected to participate in the program, we conducted intent-to-treat (ITT) analysis. We estimated the impacts of the program on various household-level outcomes of interest using ordinary least squares regression. The regression to obtain the ITT estimates is the following: Yi = α + βTreat + ϵi, , where Treat is a dummy for assignment to the treatment group (i.e., equals 1 if a household belongs to a community that was randomly assigned to the treatment group and 0 if assigned to the control group). Despite careful efforts to ensure adherence to randomized assignment, there is a possibility of non-compliance, i.e. households that may have initially signed up for the program subsequently did not participate; or some of the control beneficiaries might have participated in the program. Household surveys show very low levels of non-compliance - around 1.8 percent of treatment households report not participating and 7.4 percent of control households report participating. Despite very low levels of non-compliance, for robustness, we also estimate the effect of treatment on those whose treatment status was affected by the random assignment (i.e., compliers), which is known as the local average treatment effect (LATE)9. These estimates the instrumental variable (IV estimates) of β in the equation above, using the dummy random assignment as an instrument for treatment. the the are for B. Data One challenge in collecting data for the evaluation was that PW beneficiaries within communities – people who would be working on specific CfW sub-projects –were not preidentified. Instead they were selected on the first day of the sub-project, largely on a first-come first-serve basis subject to eligibility criteria being met. This precluded the possibility of simultaneous baseline data collection in control and treatment households. Data was collected in three phases – (i) data collection for beneficiary tracking; (ii) data collection through unannounced site visits at CfW projects in treatment communities; and (iii) endline household survey. To enable documentation and follow-up of treatment and control households, a beneficiary tracker survey was administered on the first day of implementation for treatment (beneficiary tracker administered in April 2012) and control (beneficiary administered in July 2012) CfW sub-projects. This tracker was the basis of which treatment and control households were identified and interviewed for the endline survey (July-Aug 2012). The endline household survey coincided with the start of CfW implementation in control subprojects, so that even though the households in control sub-projects were identified they still had not started working. Endline household survey was implemented simultaneously in treatment and control households before control households received treatment. The content of survey data is summarized below: 9 See Angrist and Imbens (1994, 1995). 6 • The beneficiary tracker surveys collected basic demographic information from beneficiaries, contact details for tracking them in subsequent survey rounds, and information on their perceptions of the program and its processes prior to beginning work on the sites. This survey was administered at 276 sites (April 2012 for treatment subprojects; July 2012 for control sub-projects) to a total of 17,670 beneficiaries on the first day of sub-project implementation. • The unannounced observational visits to treatment sub-project sites midway through the physical implementation of the sub-projects (May-June 2012). The unannounced site visit survey was administered at 141 sites of the 143 original treatment sites10. This survey was a two-part survey designed to collect information on overall program implementation and specific processes, as well as beneficiary knowledge of and satisfaction with the program. Part 1 consisted of observations (e.g., worker roll call, checks of attendance and other records) and an interview with a contractor representative on site; Part 2 consisted of an interview of two (one male and one female) randomly selected beneficiaries. A total of 279 beneficiaries (3 percent percent of the 8,883 working on the 141 sub-projects) were interviewed, around half of whom were female. • The endline household survey was administered concurrently to treatment and control households (July-August 2012) - at the end of implementation for the treatment group and the start of implementation for the control group. This survey was administered to an average of 20 beneficiary households from each of 275 sub-projects, as one sub-project in the Western area was cancelled during the IE implementation, for a total of 5,506 beneficiary households. The survey covered a range of topics, but focused on measuring program effects along the following dimensions: (a) labor market outcomes and economic activity; (b) household assets, consumption and savings levels; and (c) utilization of education and health services. All data collection was carried out by Sierra Leone’s national statistical agency, Statistics Sierra Leone. The administrative data was collected and maintained by NaCSA for operational and monitoring purposes. C. Measurement issues and possible threats to identification We do not consider the absence of detailed baseline data across treatment and control communities to be a serious limitation to causal identification. Power calculations suggest that a randomized cluster design (clustered at the community (CfW sub-project) level) with 276 communities is sufficient to ensure balance between treatment and control households thereby ensuring comparability of the two groups for causal attribution. Nonetheless we are able to present some – admittedly limited – evidence of pre-intervention balance between treatment and control using those variables collected during endline surveys that were not expected to change over the program’s short duration. As shown in Table 1, the overall treatment group is statistically comparable to the control group for most of these variables tested. Another measurement issue relates to the practice of rotation (described in Section II) which was applied in an informal and largely undocumented way in treatment communities. This has 10 Two treatment sites were found to be inactive at the time of unannounced visit. 7 implications for measurement of program impacts because we measure program impacts through ‘registered beneficiaries’ who are identified on the first day of sub-project implementation. If rotation occurs, the impacts captured by the IE may be under- or overestimated. For instance, registered beneficiaries may be more informed and better-networked than non-registered beneficiaries, which may lead them to have better outcomes even in the absence of the program, leading the IE to over-estimate the program effects. Conversely, nonregistered beneficiaries may be poorer and may have a higher return to receiving the transfer (for instance through lower substitution effects), in which case the IE may be under-estimating the program’s effects. Data collected during the unannounced site visits indicates that on average, 13.1 percent of beneficiaries on site at the time of the visits were not registered beneficiaries. Similarly, timesheet records show that on average, 13.6 percent of the workers listed on the timesheets were not registered beneficiaries. On average there are 65 registered beneficiaries per subproject and 10 non-registered beneficiaries listed on timesheets. While this is not definitive evidence of rotation, as these non-registered beneficiaries may have simply been alternates (i.e., replacements from the same household who are nominated to work in the event of absence by the beneficiary), at least a portion of these additional workers are likely to come from households not captured by the IE. Discussions with administrative staff confirm this practice took place at least in some sites, despite attempts to prevent it. Beyond the potentially over- or under-stated program impacts captured by the IE, the existence of rotational practices would also imply that the actual program impacts may have been diluted, as the same total transfer amount was distributed across a larger number of beneficiaries. IV. Descriptive analysis A. Sub-project characteristics The CfW sub-projects have national coverage and are spread fairly evenly across urban and rural areas. Figure a shows the geographical distribution of all the sub-projects covered under the evaluation; Figure b shows the precise location of the treatment sites based on GPS data.11 The most common types of sub-projects are feeder road rehabilitation projects (67 percent), inland valley swamp rice (9 percent), and other agriculture (13 percent). The average labor intensity of the sub-projects is 60 percent, but there is some variance, with roads sub-projects typically lower in labor intensity. B. Beneficiary characteristics The data indicate that CfW program primarily reaches youth with low levels of education working in the agricultural sector. The program also met its gender targets and did not induce negative impacts on schooling for its young participants. The average age among beneficiaries is 27 and 92 percent of beneficiaries are between the ages of 15 and 35, and hence fall within the eligible age group for the CfW program. The program design emphasized adequate participation (minimum 30 percent) of female beneficiaries and this goal seems to have been met – the average female share of beneficiaries is 33 percent. Female participation varies by sub-project type, with the share of female beneficiaries is highest among IVS rice sub-projects (43 percent) and lowest among roads sub-projects (30 percent). 11 GPS data was only collected for treatment sites. 8 Nearly half of beneficiaries (49 percent) worked in the agricultural sector as their main occupation outside of the CfW program. Other top occupation categories outside of the program included: students (15 percent), street and related sales and services (10 percent), and building and related trades workers (4 percent). More than half (56 percent) of beneficiaries had not engaged in any remunerated work in the month prior to participating in the program. Among the 44 percent who had paid work outside the program, average daily earnings were $2.5 and the majority (75 percent) was self-employed. Almost half (46 percent) of the beneficiaries reported that they engaged in unpaid family farm work. Education levels are fairly low among CfW beneficiaries – 52 percent have less than primary education (i.e., incomplete primary or no schooling), 35 percent have completed primary, and only 12 percent have completed secondary or above. The average level of education is lower among female beneficiaries. Nearly 60 percent of females have no education compared to about 35 percent for males. One potential concern with public works programs targeted to youth is that they may attract youth that would otherwise be attending school, leading them to drop out. Our data suggest that for the most part, the program does not lead youth to drop out of school to enter the program: only 3 percent of beneficiaries who had ever attended school reported that they had stopped attending school to enter the CfW program. V. Results Our results suggest the program induced significant welfare impacts in the very short run. For households with limited economic opportunities at baseline, these impacts manifest along so many different dimensions that CfW participation appears to be fairly transformative – at least in the immediate aftermath. Specifically, we find strong impacts not just on short-run economic activity, income, and consumption patterns but also on the overall productive potential with implications for household resilience and opportunity in the longer run. The impacts vary systematically along key household characteristics like rural/urban location and education level of household head. Less impact heterogeneity is seen across gender of participant within CfW. As mentioned above (see Section III.C), data from unannounced site visits as well as discussions with administrative staff indicate that rotation took place in at least some of CfW sites. This implies that in that there is low likelihood that any given household participated in the program for its entire duration, indicating that estimated program impacts might be lower bounds. A. Impacts on economic activity As anticipated, the CfW program has significant impacts on overall household economic activity (see Table 2.1). Also, even in the very short run, we observe strong spillover economic activity impacts on non-participating household members. Overall, we find that treatment households are significantly more likely to be engaging in remunerated work. Household members in treatment households are 34 percent more likely to have had paid work in the last 12 months. Participation in CfW leads to a net increase in the household labor market participation - share of household members working for cash is significantly higher for treatment households. 9 Increase in levels of household labor market activity is more pronounced among rural households and households where the head has lower levels of education (see Table 2.2 and 2.4); suggesting these effects are stronger for households whose labor market opportunities were more constrained at baseline. This most likely signals that the program especially benefits households that rely on casual labor. The relatively higher impacts in these households also supports the notion that more effective targeting would enhance program impacts. It also signals that relying heavily on self-targeting for such programs may not be effective in contexts with widespread underemployment even among the better off. Given the net increase in household economic activity, program participation by one household member is not crowding out other household members from the labor market. This is true for both male and female beneficiary households (see Table 2.3). On the whole, employment of nonparticipating household members doesn’t just remain constant, it increases – much more so when participating household member is male (see Table 2.3). However, labor market impacts on non-participating household members in beneficiary households are substantively different depending on household characteristics – location and education level of household head. In rural areas both male and female non-participating members register more employment; in urban areas its mostly non-participating males (and not females) who register more employment. Therefore one noteworthy impact of the CfW program is greater female labor market participation in participating households – both as primary beneficiaries and also as indirect beneficiaries within participating households. As above, these impacts are more pronounced in households with constrained economic opportunities and higher reliance on casual labor – those in rural areas and those where household heads have low levels of education (see Table 2.4). It is worth noting that there is no evidence of short term impacts on incidence of child labor. This result is robust to rural/urban interactions and interactions by education level of household head. One interesting auxiliary impact of program participation is increase in reported migration for treated households (see Table 2a). An increase in both in (individuals moving into the household from other town/city) and out (individuals moving out of the household to other town/city) is observed. These impacts are almost exclusively concentrated in rural households and households with low education levels of household heads. Intuitively, increased migration seems like a natural outcome of increased economic potential in areas where job opportunities are scarce. B. Impacts on household income, expenditure, savings, and investment B.1 Income effects Given the strong impacts CfW participation has on household economic activity, it is not surprising to find clear income effects. Treated households have higher reported income - on average, the total value of reported cash and in-kind payments received by household for work in the previous month increases by 26 percent (see Table 3.1). In line with the results on economic activity, rural households exhibit stronger income effects than their urban counterparts. On the other hand, income effects are stronger for households where the head has at least some education (see Table 3.4). 10 Interestingly, the average increase in cash income reported by treatment households (approximately 41,100 Leones) is less than one-third of what these households were entitled to receive under the program over the period under analysis. Based on impacts on household economic activity, it is clear that CfW participation does not crowd-out employment of nonparticipating household members – in fact in some cases crowds-in more employment. As such, it is clear that this discrepancy cannot be attributed to intra-household substitution effects in terms of labor market participation (i.e., non-participants within the household reducing the amount of paid work outside the program upon entering the program). And given the low percentage of beneficiaries who were doing any paid work before the program was introduced, individual substitution effects among CfW participants are likely to be very low.12 Even among those who were not working prior to the program – those for whom the substitution effect should have been zero – the average increase represented only 40 percent of the intended transfer amount, suggesting this discrepancy cannot be explained by substitution effects alone. Instead, this finding is more likely to be linked to the practice of rotation or to leakages. As mentioned above, rotation is a practice in which a sub-project accepts more beneficiaries working fewer days than it is designed to, typically because socially it is perceived as more fair. This had been a common practice in previous rounds, and although the data does not allow us to ascertain the exact extent to which it occurred, it does provide an indication that it likely rotation occurred. As with any program providing cash or in-kind transfers, there is also the possibility of leakages, or money reaching individuals who are not the intended beneficiaries. While there is no concrete evidence of payment leakages found by the IE, the program implementers have acknowledged that the payment arrangement in place during the IE left a high risk of leakage13. B.2 Impacts on consumption B.2.1 Consumption goods The efficacy of Public Works programs as anti-poverty instruments depends in part on how their short-run income effects impact household spending and consumption patterns. We examine this question in the very short run, but unfortunately, the time-frame of the evaluation prohibits us from looking at these patterns in the longer term. Nonetheless, the very short run impacts are suggestive and can provide important insights on potentially longer term dynamics. For consumptions goods, a short consumption module was administered to capture program impacts on key expenditure categories, which included: utilities (e.g., water, electricity, fuel, phones), food, children’s schooling, hygiene, home improvements, transfers out to nonhousehold members, and some temptation goods. Results shows that program has positive impacts on beneficiary households’ spending on food, in line with the CfW design as a mechanism to support beneficiary households in meeting their food needs, particularly in the face of rising food prices (see Table 4.1). Treatment households reported spending 8 percent more on food in the past month than control households.14 Not surprisingly, the most significant increases in food consumption are registered by households where the household head has less These cannot be accurately measured due to rotation practices and its implications for attendance tracking. 13 Wherein contractors were responsible for making payments to beneficiaries. 14 Sierra Leone Youth Employment Support Project Emergency Project Paper (June 2010). 12 11 than primary education. Household expenditures on hygiene products also increases by 15 percent.15 As expected, impacts on household consumption patterns appear to vary systematically across key baseline characteristics – location, gender of the primary participant, and education level of household head. In general, rural households register stronger consumption impacts. This is expected given that compared to other urban counterparts; rural households register stronger labor market participation impacts (greater paid employment for both male and female nonparticipating members in beneficiary households) and in turn stronger income effects. Specifically, categories in which rural households register positive impacts, but urban households do not, include: public transport (potentially linked to migration, see Section V.A) and hygiene products. On average, we do not see a systematic increase in spending on cigarettes/ tobacco, festivities, or inter-household transfers. The overall patterns suggest that in the short run increased income leads, in part, to increased spending on welfare enhancing goods and services (see section B.2.2 and B.2.3 below). B.2.2 Health Services Program participation produces positive impacts on beneficiary households’ utilization of health services, particularly for young male children. These results are summarized in Table 5. On average, treated households reported 12 percent more visits to health facilities than the control group and the proportion of boys aged 0 to 5 who were taken to a health facility when sick was 9 percent higher in treatment households. If we consider all boys ages 0 to 5 irrespective of their health status at the time they were taken to the doctor, the increase is even higher (23 percent). In addition, program participation leads to increased spending on drugs and medications. Treated households reported spending 18 percent more on drugs and medications in the previous month than the control group. These results are in line with the finding of increased utilization of health services. Increase in health-seeking behavior manifests for both rural and urban households and irrespective of whether the participating household member is male or female. However, these impacts are stronger for households where household head has less than primary education, due most likely to lower baseline values. These findings are particularly interesting as the intervention did not have any specific design aspects intended to encourage more health-seeking behavior. Since part of the transfer was spent on health, this suggests that the transfer may have relieved a financial constraint that beneficiary households faced in accessing health services. B.2.3 Education services In contrast to program impacts on access to health services, CfW participation has no systematic impact on access to education (see Table 6). In fact, student absenteeism appears to increase in treatment households. Increase in student absenteeism is stronger when program participant is male household member, for rural households, and for households where head has less than secondary education. Clearly, student absenteeism increases most significantly for households 15 We also find some puzzling decreases in the household spending on fuel (19 percent) for lighting, heating, and cooking. 12 that experience greatest increases in economic activity among adults. One possible explanation for these results is that for households where labor market participation of adults increases significantly, including for non-participating household members (see section V.A), school-going children might be pulled into helping with household chores or taking care of younger siblings, leading to increased absenteeism. Note however that at least in the short run, treated households do not report lower school enrollment for children; just lower school attendance. It is difficult to speculate on the longer term implications of these short-term effects. B.3 Impacts on savings and investment Based on the section above, it is clear that part of the income gains from CfW participation are being used for welfare-enhancing consumption (e.g. food, hygiene products) especially for rural households and households with low education. However, the longer-term poverty alleviation potential of this instrument is directly linked to the extent to which CfW income is used to enhance the productive potential and overall resilience of targeted households. It is on this dimension that we see some of the most interesting program impacts. This is despite the fact that the CfW program’s emphasis was on temporary employment rather than on boosting productive capacity of poor households. First, in terms of savings we see some positive impacts. For treated households participation in informal savings groups (osusus) increased by 16 percent (see Table 7.1), however there are no discernable impacts for formal savings (as in likelihood of having a savings account). Participation in informal savings groups increases more markedly for rural households and for households where the head has less than primary education. In fact for the latter group, there appears to be some substitution with households opting out of formal savings accounts and into informal savings groups. However, the total monetary value of reported savings does not appear to be systematically higher in treated and control households, although we find marginal increases in rural households. Various types of investments are examined. Treated households have significantly higher investments in home improvement (by 33 percent). They also invest more in small livestock assets.16 Treatment households are 34 percent more likely to own goats or pigs and the number of poultry owned is 26 percent higher than control households. In addition, in rural households we also see higher investments in existing businesses. These findings validate the argument of PW as promoting resilience against shocks. Not surprisingly, these impacts are largely confined to rural households and households with low levels of education, which experience stronger employment and income effects. One of the starkest impacts is in terms of new businesses. Treatment households are nearly 4 times more likely to set up a new enterprise than control households. Only 8.9 percent of control group households reported that someone in the household had set up a new enterprise in the last 3 months, compared to 33.6 percent in the treatment group. Interestingly, likelihood of starting a new business is stronger for households where participating household member in the CfW program is female. Once again, the likelihood of starting new business is stronger for rural households and households with low levels of education. Households in the treatment group are also more likely to own a motorbike – 15% in treatment households compared to 10% control households. This points to the fact that the program is not very well-targeted, as nationally representative data from the 2011 SLIHS less than 5% of poor households own motorbikes. 16 13 C. Impacts on social cohesion Safety net programs are sometimes thought of as providing a mechanism through which social cohesion can be promoted by including groups that tend to be marginalized (such as the poor and vulnerable), but a recent review of public works programs indicates that the evidence of this is quite limited (Andrews et al 2013). In the context of Sierra Leone, disenfranchised youth as considered to be a particular threat to social cohesion, as many youth were engaged in the violent civil conflict which ended in 2002. With this in mind and given the CfW program’s focus on youth from poor households, we try to capture the program’s effects on social cohesion. We find that the program had positive impacts on family trust and cohesion (see Table 8). Treated households were more likely to report having high trust in other household members and extended family (10% and 40% higher than the control group, respectively). The effects of the program on social cohesion are more ambiguous. Treated households were also more likely to report high trust in people of the same religion (24% higher).17 However, they were less likely than the control group to report high trust in someone from the same or a different ethnicity (30% and 27%, respectively). Factors behind these results are being explored. VI. Conclusions Public works have become a popular policy instrument for protecting the poor from income shocks. They have the added perceived benefit of creating useful public goods or services for the communities, making them particularly attractive for post-conflict societies. However, increasingly their development effectiveness is being judged, not just by the degree of stabilization they provide during adverse economic shocks but also by their ability to improve the overall productivity of beneficiary households through investments in productive assets and human capital development. Using this lens we provide evidence around the very short term effectiveness a Cash for Work program in Sierra Leone targeted at unemployed youth in poor and vulnerable communities to mitigate impacts from the global food, fuel, and financial crises. The phase-in implementation of the program was exploited to implement a community-level randomized control trial which helps measure the causal impacts of the program on household outcomes over a period of three to four months. We find that, as per design, the program succeeded in attracting young people (ages 15-35) with low levels of education who were predominantly working in the agricultural sector. Further, it was successful in impacting poor households through the anticipated employment channels. We find that treatment households are significantly more likely to be engaging in remunerated work. In fact, participation in the PWs appears to have a multiplier effect within the household and crowds-in labor market work for non-participating household members. These employment impacts manifest in household income, which increases by 26 percent for treatment households. Part of the increased income is spent on food, health services, and hygiene products. We also find positive impacts on beneficiary households’ utilization of health services, particularly for young male children. However, we do not see any corresponding 17 There were no effects found on trust in people of a different religion or from the same community. 14 increases in access to education. In fact, within the short time frame of the study, rates of school absenteeism are higher among children in treatment households. Note however that we do not see an increase in children’s participation in the labor market, suggesting that increased student absenteeism rates are most likely linked to household chores and child-minding. This, along with results on non-participating adult household members above, suggests that PWs can significantly alter household time allocations. Beyond these immediate welfare impacts, the program appears to have been a highly productive safety net for beneficiary households. Participation in the CfW program significantly increased the likelihood of enterprise creation for households. Further, program participation also boosted participation in informal savings groups. However, we do not find a corresponding increase in the amount of household savings reported. We also find that the CfW program has positive impacts on the beneficiary households’ asset accumulation in terms of small livestock assets. Investment in homes and existing businesses also increase. However, almost all documented impacts are strongly mediated by household characteristics at baseline; specifically, impacts appear to be strongest for households that at baseline were most constrained in terms of economic opportunities. These include rural households and households where household heads have little or no education. Clearly therefore PWs have the potential to unleash dramatic, perhaps even transformative, impacts on households. Even in the fragile, post-conflict context of Sierra Leone, the CfW program catalyzed strong impacts on nearly all key aspects of household welfare and decisionmaking – employment, income, consumption, savings, investment, health and education. In addition, if targeted properly, PWs can be highly pro-poor - expanding opportunities where they are most constrained and the margins are greatest. This paper shows that PWs can in fact do it all; even in a fragile setting they have the potential to not just build resilience, but also provide opportunity to households caught in the trap of underemployment and poverty. Even when they are designed as crisis response, PWs can nonetheless provide households pathways towards higher productivity. While it is critical to get design and implementation right, the optimism surrounding PWs for reconstruction of postconflict communities is not entirely unjustified. 15 References Adams, L. and E. 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Available at: https://www.dnp.gov.co/Portals/0/archivos/ documentos/DEPP/Evaluacion_Politicas_Publicas/Serie_Evauacionl_Politicas_5_Evaluacion_Em pleo_en_accion.pdf Dutta, Puja, Rinku Murgai, Martin Ravallion, and Dominique van de Walle. 2012. “Does India’s Employment Guarantee Scheme Guarantee Employment?” Policy Research Working Paper 6003, World Bank, Washington, DC. Galasso, Emanuela and Martin Ravallion (2004). “Social Protection in a Crisis: Argentina’s Plan Jefes y Jefas”, World Bank Economic Review, 18(3): 367-399. Gilligan, D., J. Hoddinott, and A. Taffesse. 2008. "The Impact of Ethiopia's Productive Safety Net Programme and its Linkages." Discussion Papers 839. Washington, DC: International Food Policy Institute. Hirway I., M. Saluja, and B. Yadav. 2009. Analysing Multiplier Impact of NREGA Works through Village SAM Modelling. Annandale-on-Hudson, NY: The Levy Economics Institute of Bard College. Draft. McCord, A. and D. van Seventer. 2004. The Economy-wide Impacts of the Labour Intensification of Infrastructure Expenditure in South Africa. Conference on African Development and Poverty Reduction, the Macro--Micro- Linkages 13-15 October 2004, South Africa. 16 Rosas and Solbes (2013). “Assessing the Targeting of Sierra Leone’s Cash for Work Program: Current Performance and Proposed Improvements.” Draft. Subbarao, Kalanidhi, del Ninno, C., Andrews, C. and Rodriguez-Alas, C. 2012. “Public Works as a Safety Net: Design, Evidence, and Implementation.” World Bank. Zimmermann, L. (2013). Why guarantee employment? evidence from a large indian publicworks program. Working Paper. World Bank Independent Evaluation Group. 2011. “Social Safety Nets: An Evaluation of World Bank Support.” 17 Tables Table 1: Balance tests Variable Urban, percent of households District code Number of children ages 6-14 Age of head Head is female, percent of households Head ever attended school, percent of households Highest degree head attained (categorical, 1-11) Head did not complete primary, percent of households Distance to main water source, minutes *** p<0.01, ** p<0.05, * p<0.1 Mean in treatment Mean in control 48.7 26.4 1.1 41.2 24.4 50.1 27.2 1.0 40.9 17.7 Statistically significant difference No No No No Yes*** 41.6 42.4 No 3.3 3.4 No 63.4 62.4 No 9.1 8.7 No 18 Table 2: Impacts on Economic Activity Table 2.1 Impacts on Economic Activity - Overall (1) (2) % of hh members % of non-beneficiary who worked for hh members who cash in last 12 worked for cash in months. last 12 months. (3) % females who worked for cash in last 12 months. (4) % non-beneficiary females who worked for cash in last 12 months. (5) % children aged 614 who worked for cash in last 12 months. 0.112 0.0544 0.110 [0.0123]*** [0.00932]*** [0.0145]*** Constant 0.332 0.224 0.352 [0.0101]*** [0.00739]*** [0.0116]*** Table 2.2 Impacts on Economic Activity - Urban-Rural Treatment 0.123 0.0658 0.137 [0.0187]*** [0.0143]*** [0.0197]*** urban -0.0164 0.00718 0.00850 [0.0201] [0.0148] [0.0230] urban x treatment -0.0234 -0.0231 -0.0558 [0.0243] [0.0186] [0.0287]* Constant 0.340 0.220 0.348 [0.0169]*** [0.0118]*** [0.0170]*** Table 2.3 Impacts on Economic Activity – Gender of Main Beneficiary treatment 0.101 0.0513 0.0693 [0.0142]*** [0.0105]*** [0.0177]*** female -0.0259 -0.0197 -0.0267 beneficiary [0.0130]** [0.00912]** [0.0171] 0.0400 [0.0139]*** 0.282 [0.0113]*** 0.00644 [0.00813] 0.0391 [0.00503]*** 0.0729 [0.0200]*** 0.0298 [0.0224] -0.0678 [0.0274]** 0.268 [0.0168]*** 0.00816 [0.0125] -0.0229 [0.00978]** -0.00674 [0.0155] 0.0501 [0.00815]*** 0.0290 [0.0177] -0.218 [0.0140]*** 0.00703 [0.00942] -0.00234 [0.00934] treatment x female beneficiary Constant 0.0391 [0.0193]** 0.00239 [0.0140] 0.355 [0.0140]*** 0.0395 [0.00571]*** 0.0601 [0.0158]*** 0.0465 [0.0198]** 0.00658 [0.0105] -0.0204 [0.0116]* Treatment 0.0291 [0.0161]* 0.0103 [0.0127] 0.110 [0.0213]*** 0.340 0.228 0.360 [0.0118]*** [0.00830]*** [0.0139]*** Table 2.4 Impacts on Economic Activity - Education Level of Household Head treatment 0.126 0.0649 0.128 [0.0143]*** [0.0111]*** [0.0171]*** primary 0.0528 0.0126 0.0489 completed [0.0170]*** [0.0131] [0.0207]** secondary completed treatment x primary completed treatment x secondary completed Constant Observations (N) 0.0120 [0.0179] -0.0383 [0.0216]* 0.0310 [0.0143]** -0.0121 [0.0174] 0.00545 [0.0254] -0.0498 [0.0287]* 0.0376 [0.0249] -0.0576 [0.0268]** -0.0332 [0.0105]*** -0.00449 [0.0170] -0.0373 [0.0226] -0.0424 [0.0183]** -0.0587 [0.0318]* -0.0625 [0.0312]** 0.00393 [0.0158] 0.320 [0.0120]*** 5,323 0.216 [0.00874]*** 5,323 0.344 [0.0137]*** 5,190 0.269 [0.0127]*** 5,190 0.0479 [0.00668]*** 3,110 19 Table 2.a: Impacts on Migration Table 2.5 Impacts on Migration Table 2.5.1 Impacts on Migration - Overall (1) Migration of Household member to other town/city in last 3 mos. Treatment 0.0570 [0.0128]*** Constant 0.126 [0.00828]*** Table 2.5.2 Impacts on Migration – Urban - Rural Treatment 0.0611 [0.0171]*** urban 0.0268 (2) Migration of Household member from other town/city in last 3 mos. 0.0388 [0.0119]*** 0.118 [0.00775]*** 0.0361 [0.0166]** -0.00746 urban x treatment [0.0164] -0.00774 [0.0155] 0.00537 Constant [0.0254] 0.113 [0.0238] 0.121 [0.0113]*** Table 2.5.3 Impacts on Migration – Gender of Main Beneficiary Treatment 0.0507 [0.0169]*** female beneficiary -0.0311 [0.0162]* treatment x female beneficiary 0.0207 [0.0237] Constant 0.137 [0.0111]*** Table 2.5.4 Impacts on Migration – Education Level of Household Head Treatment 0.0523 [0.0152]*** primary completed 0.0155 [0.0202] secondary completed 0.0310 [0.0203] treatment x primary completed 0.00546 [0.0288] treatment x secondary completed 0.0271 [0.0337] Constant 0.117 [0.0104]*** Observations (N) 5,311 [0.0113]*** 0.0389 [0.0149]*** 0.00795 [0.0141] -0.000913 [0.0214] 0.115 [0.00971]*** 0.0408 [0.0143]*** -0.0112 [0.0172] 0.000649 [0.0174] 0.00419 [0.0262] -0.0127 [0.0298] 0.119 [0.00910]*** 5,309 20 Table 3: Income Effects Table 3.1: Impacts on household income – Overall (1) (2) Total money hh received Total value of inin cash (past month) kind payments Treatment 41,114 -24,058 [18,092]** [8,397]*** Constant 240,701 47,708 [16,146]*** [6,592]*** Table 3.2: Impacts on household income – Urban-Rural Treatment 47,882 -16,911 [15,863]*** [8,639]* Urban 58,576 21,974 [30,832]* [13,021]* urban x Treatment -7,185 -14,025 [34,582] [16,780] Constant 210,149 36,681 [12,287]*** [8,047]*** Table 3.3: Impacts on household income – Gender of Main Beneficiary Treatment 32,759 -27,318 [21,796] [9,187]*** female beneficiary -18,401 -8,310 [17,970] [9,209] Treatment x female beneficiary 20,112 11,113 [21,836] [11,378] Constant 247,278 49,799 [19,854]*** [7,981]*** Table 3.4: Impacts on household income – Education of Household Head Treatment 29,302 -23,852 [23,257] [9,519]** primary completed -5,776 -624.5 [24,643] [13,050] secondary completed 53,748 12,063 [24,693]** [14,210] Treatment x primary completed 14,633 6,987 [27,790] [16,340] Treatment x secondary completed 90,669 -13,104 [35,702]** [18,630] Constant 230,008 46,616 [21,783]*** [7,080]*** Observations (N) 4,415 5,298 VARIABLES (3) Total value of cash and in-kind payments (past month) 58,832 [18,229]*** 224,204 [15,452]*** 84,376 [17,868]*** 79,362 [30,089]*** -50,188 [35,763] 184,432 [14,147]*** 47,004 [20,933]** -21,829 [17,088] 30,917 [21,887] 230,993 [18,298]*** 56,948 [21,134]*** 16,472 [24,156] 82,371 [23,546]*** 642.9 [27,848] 29,449 [34,601] 206,296 [18,441]*** 5,323 21 Table 4: Impact on Consumption – Part 1 4.1: Impact on Consumption – Part 1 - Overall (1) (2) (3) (4) les Water per Wood and Fuel for Electricity cooking/ (past month similar products18 lighting month) (past /heating month) per month ent -806.2 3,684 -6,051 3,471 [1,055] [3,279] [3,228]* [2,691] nt 4,262 29,911 32,012 12,080 [772.8]*** [2,243]*** [2,589]*** [1,755]*** 4.2: Impact on Consumption – Part 1 – Urban – Rural ent -278.9 2,854 -2,437 1,396 [647.0] [2,912] [2,204] [1,094] 6,217 32,219 34,234 21,395 [1,443]*** [3,528]*** [4,311]*** [2,979]*** x Treatment -894.6 2,459 -7,015 5,012 [2,012] [5,195] [5,382] [4,607] nt 1,150 13,856 15,139 1,424 [504.7]** [2,314]*** [1,548]*** [350.7]*** 4.3: Impact on Consumption - Gender of Main Beneficiary ent 86.87 5,629 -5,143 3,543 [1,193] [3,552] [3,696] [3,277] beneficiary 565.2 1,200 -3,030 -2,367 [906.6] [2,997] [3,722] [2,808] ent x female -2,322 -5,141 -1,998 -823.5 iary [1,320]* [4,209] [4,458] [4,206] nt 4,088 [725.9]*** 18 29,691 [2,160]*** 33,226 [2,722]*** 12,992 [2,187]*** (5) Electricity per month (6) Food (past one month) 2,124 [2,035] 7,742 [1,224]*** 21,967 [12,381]* 269,641 [9,121]*** 460.8 [749.7] 14,710 [2,077]*** 3,969 [3,597] 384.5 [301.7] 16,532 [13,982] 92,130 [16,465]** * 14,941 [21,718] 222,889 [9,361]*** 2,669 [2,369] -2,505 [1,480]* -959.8 [2,370] 8,537 [1,431]*** (7) Fuel for motor vehicles (past month) -2,862 [1,236]** 5,842 [1,109]*** (8) Public transport (past month) (10) Cigarettes or tobacco (past month) (11) Hygiene products (past month) (12) Household supplies (past 2 months) (13) Festivities (past 2 months) 3,906 [3,872] 45,417 [3,143]*** (9) Fixed or mobile phones (past month) -2,213 [4,304] 36,699 [3,464]*** 477.5 [982.5] 6,776 [822.4]*** 3,942 [2,192]* 25,437 [1,671]*** -1,747 [1,959] 15,206 [1,446]*** 2,363 [3,245] 21,979 [2,184]*** -1,991 [1,161]* 5,190 [2,176]** 10,658 [3,472]*** 29,716 [5,837]*** 3,718 [2,739] 47,040 [5,680]*** -54.23 [1,290] -3,991 [1,606]** 5,747 [1,711]*** 17,089 [3,028]*** 2,011 [1,713] 14,692 [2,600]*** 7,604 [3,926]* 10,709 [4,291]** -1,642 [2,430] 3,266 [1,090]*** -12,588 [7,292]* 30,764 [2,409]*** -8,549 [7,022] 13,402 [2,036]*** 955.5 [1,917] 8,778 [1,075]*** -3,109 [3,984] 16,913 [1,155]*** -7,194 [3,707]* 7,868 [1,225]*** -10,548 [6,455] 16,659 [2,370]*** 25,289 [13,363]* -9,616 [10,354] -7,931 [13,195] -2,134 [1,469] 975.1 [2,426] -1,946 [2,554] 6,815 [4,156] -178.4 [3,408] -7,029 [4,352] 327.9 [4,753] -3,448 [4,056] -6,329 [4,829] 1,372 [1,125] -416.4 [1,717] -2,235 [1,864] 5,443 [2,472]** -1,177 [2,255] -3,790 [2,788] -1,996 [2,333] -2,300 [2,562] 1,323 [3,163] 4,908 [4,074] -2,376 [3,802] -5,893 [5,026] 272,813 [9,514]*** 5,482 [1,288]*** 45,231 [3,157]*** 37,500 [3,636]*** 6,931 [907.8]*** 25,927 [1,797]*** 15,905 [1,729]*** 22,487 [2,628]*** Wood/charcoal/ kerosene/ paraffin/ candles/ matches 22 4.4: Impact on Consumption - Education Level of Household Head ent -1,042 5,785 -4,425 2,845 [799.9] [3,013]* [3,794] [2,474] y completed 3,069 14,466 7,937 7,036 [919.0]*** [3,177]*** [4,519]* [3,557]** ary ted 2,130 [1,551] 5,262 [1,788]*** 26,116 [12,166]** 50,753 [11,336]** * 79,772 -902.1 [933.6] 1,585 [1,571] 6,282 [3,143]** 19,149 [5,024]*** -1,188 [3,722] 20,129 [4,692]*** 605.9 [1,103] -853.2 [1,125] 3,384 [2,009]* 1,206 [2,021] -691.4 [1,787] 6,009 [2,184]*** 5,870 [3,496]* 4,411 [4,145] 15,719 23,253 40,852 -2,730 15,625 18,635 14,410 [5,054]*** [6,213]*** [6,487]*** [1,909] [4,974]*** [5,341]*** [6,626]** 14.07 [1,778] -6,195 [6,343] -2,436 [5,534] 2,291 [1,808] 6,164 [2,952]** -1,701 [3,012] -8,174 [5,543] 3,897 20,592 22,212 23,492 17,768 [1,243]*** [3,703]*** [5,808]*** [5,386]*** [2,795]*** ent x y completed 1,017 [1,662] -5,167 [4,579] -4,645 [5,085] 887.9 [5,145] 1,078 [3,039] [13,205]** * -18,997 [15,882] ent x ary complete 246.2 [1,786] -853.0 [5,371] -4,912 [7,052] 4,095 [7,359] -1,363 [3,943] 7,191 [17,228] -9,541 [5,497]* 2,163 [8,000] 2,653 [8,600] -1,353 [2,081] 626.2 [6,475] -3,333 [6,686] -6,166 [8,933] nt 2,961 [616.6]*** 5,289 22,594 [1,907]*** 5,010 27,075 [3,053]*** 4,485 6,924 [1,547]*** 5,165 3,870 [845.6]*** 5,266 244,635 [8,697]*** 4,933 2,686 [798.2]*** 5,178 36,958 [2,316]*** 4,806 25,793 [3,067]*** 4,746 7,012 [893.1]*** 5,083 21,821 [1,558]*** 5,042 10,915 [1,323]*** 4,932 18,324 [2,176]*** 5,122 ations (N) 23 Table 4: Impact on Consumption – Part 2 Table 4.1: Impacts on Consumption – Part 2- Overall (1) (2) VARIABLES Boys Girls schooling schooling (past month) (past month) (3) Clothing for adults (past 2 months) (4) Clothing for girls (past 2 months) -6,111 -6,085 -4,952 -3,993 [4,622] [3,946] [3,636] [2,544] Constant 38,809 34,349 35,653 20,294 [3,644]*** [3,134]*** [3,054]*** [2,186]*** Table 4.2: Impacts on Consumption – Part 2- Rural – Urban Treatment 3,578 -594.4 154.2 1,825 [3,318] [2,921] [3,804] [2,188] urban 38,419 29,628 19,288 16,009 [6,499]*** [5,759]*** [5,851]*** [4,168]*** urban x Treatment -19,165 -10,547 -9,771 -11,532 [8,559]** [7,388] [7,047] [4,925]** Constant 19,746 19,640 26,007 12,317 [2,454]*** [2,244]*** [3,154]*** [1,783]*** Table 4.3: Impacts on Consumption – Part 2– Gender of Main Beneficiary Treatment -5,002 -3,489 -5,881 -1,846 [5,235] [4,214] [3,883] [2,732] female beneficiary -7,805 8,459 -5,565 4,078 [4,254]* [4,874]* [3,961] [3,584] Treatment x female -1,152 -8,987 5,971 -3,595 beneficiary [5,104] [5,566] [4,818] [4,013] -4,687 [1,951]** 17,376 [1,727]*** (6) Given to nonhousehold members (past 2 mos) -2,371 [2,248] 19,850 [1,913]*** 1,046 [1,816] 12,271 [3,302]*** -11,508 [3,772]*** 11,275 [1,362]*** 3,005 [2,039] 17,311 [3,573]*** -10,702 [4,256]** 11,315 [1,479]*** -4,786 [2,177]** -936.2 [2,916] 777.8 [3,226] -2,501 [2,642] -2,242 [2,849] 1,161 [3,474] Constant Treatment (5) Clothing for boys (past 2 months) 41,358 31,731 36,491 17,987 [3,955]*** [3,183]*** [3,199]*** [2,372]*** Table 4.4: Impacts on Consumption – Part 2– Education of Household Head Treatment -432.7 -4,610 2,422 -918.8 [4,778] [3,838] [3,506] [2,323] primary completed 10,040 3,235 20,949 6,372 [5,873]* [4,612] [6,030]*** [4,912] secondary completed 30,884 24,941 30,143 16,620 [8,946]*** [8,751]*** [8,802]*** [6,542]** Treatment x primary -15,692 -2,604 -18,600 -4,019 completed [6,935]** [6,172] [6,667]*** [5,560] 17,574 [1,913]*** 20,546 [2,196]*** -2,048 [2,176] 4,535 [3,573] 13,728 [6,514]** -3,564 [4,113] -917.2 [1,962] 6,413 [2,879]** 22,253 [5,965]*** -1,449 [4,119] Treatment x secondary completed -14,748 [11,415] 869.5 [11,527] -20,489 [10,019]** -8,847 [7,544] -11,669 [6,799]* -6,350 [6,942] Constant 31,764 [3,720]*** 4,987 28,682 [3,162]*** 5,019 26,318 [2,738]*** 4,877 15,512 [1,995]*** 5,010 14,134 [1,930]*** 5,005 15,002 [1,620]*** 5046 Observations (N) 24 Table 5: Impacts on Consumption – Health Services Table 5.1: Impacts on Consumption – Health Services – Overall (1) (2) (3) (4) (5) No of Household drugs or % of boys 0-5 % of boys 0-5 visits health visits medication who went to who were sick (hhld) (incl. in hh health facility and went to transport) health facility Treatment 0.447 -1,769 11,117 0.0774 0.0773 [0.256]* [1,836] [4,577]** [0.0262]*** [0.0309]** Constant 3.633 16,624 61,074 0.337 0.846 [0.162]*** [1,290]*** [2,956]*** [0.0191]*** [0.0275]*** Table 5.2: Impacts on Consumption – Health Services – Urban-Rural Treatment 0.465 -162.2 10,236 0.0632 0.0858 [0.383] [2,327] [5,600]* [0.0317]** [0.0400]** Urban -0.799 4,896 15,804 -0.0319 0.0152 [0.315]** [2,542]* [5,751]*** [0.0392] [0.0532] urban x Treatment -0.0588 -3,160 2,243 0.0389 -0.0249 [0.502] [3,651] [8,933] [0.0555] [0.0609] Constant 4.034 14,170 53,154 0.349 0.841 [0.261]*** [1,640]*** [3,524]*** [0.0239]*** [0.0360]*** Table 5.3: Impacts on Consumption – Health Services – Gender of Main Beneficiary Treatment 0.486 -624.2 10,224 0.0598 0.0923 [0.280]* [2,259] [5,372]* [0.0327]* [0.0400]** female beneficiary 0.524 1,062 -1,726 -0.0186 0.0116 [0.248]** [2,192] [4,709] [0.0361] [0.0489] Treatment x female -0.267 -3,757 -667.5 0.0517 -0.0325 beneficiary [0.339] [2,844] [6,829] [0.0526] [0.0552] Constant (6) % of girls 0-5 who went to health facility -0.0368 [0.0240] 0.380 [0.0172]*** (7) % of girls 0-5 who were sick and went to health facility -0.0237 [0.0268] 0.896 [0.0183]*** -0.0175 [0.0286] 0.00330 [0.0368] -0.0500 [0.0510] 0.379 [0.0204]*** 0.00339 [0.0345] 0.00895 [0.0360] -0.0738 [0.0543] 0.892 [0.0246]*** -0.0343 [0.0311] 0.0224 [0.0353] -0.0103 [0.0471] -0.0111 [0.0323] 0.00554 [0.0354] -0.0155 [0.0468] 3.475 16,430 62,233 0.343 0.840 [0.182]*** [1,498]*** [3,429]*** [0.0235]*** [0.0368]*** Table 5.4: Impacts on Consumption – Health Services – Education Level of Household Head Treatment 0.632 1,825 12,889 0.0387 0.0886 [0.295]** [2,093] [5,214]** [0.0324] [0.0364]** primary completed -0.0441 5,177 9,064 -0.0795 0.0109 [0.287] [2,805]* [5,491]* [0.0513] [0.0673] Secondary completed 0.213 8,453 18,134 -0.0476 0.166 [0.318] [4,463]* [6,382]*** [0.0498] [0.0325]*** Treatment x primary -0.273 -5,500 -2,245 0.120 -0.00969 completed [0.413] [3,723] [7,952] [0.0678]* [0.0764] 0.373 [0.0234]*** 0.891 [0.0242]*** -0.0344 [0.0289] 0.0383 [0.0399] 0.0168 [0.0504] 0.0563 [0.0608] 0.000105 [0.0339] 0.0239 [0.0407] 0.0517 [0.0435] -0.0540 [0.0641] Treatment x secondary completed -0.639 [0.497] -11,553 [5,146]** -109.2 [10,990] 0.0726 [0.0728] -0.158 [0.0518]*** -0.0293 [0.0735] -0.0705 [0.0746] Constant 3.585 [0.194]*** 5323 13,870 [1,122]*** 5325 55,565 [3,309]*** 5325 0.364 [0.0246]*** 1,506 0.834 [0.0325]*** 684 0.369 [0.0209]*** 1,434 0.885 [0.0242]*** 637 Observations (N) 25 Table 6: Impacts on Consumption – Education Services Table 6.1: Impacts on Consumption – Education Services - Overall (1) (2) (3) % children 6-14 % girls 6-14 in % boys 6-14 in in school school school Treatment Constant -0.0249 [0.0218] 0.776 [0.0163]*** -0.0312 [0.0235] 0.781 [0.0170]*** -0.0255 [0.0254] 0.781 [0.0182]*** (4) % children 6-14 in school who missed school in last 4 wks 0.0579 [0.0177]*** 0.101 [0.00882]*** Table 6.2: Impacts on Consumption – Education Services – Urban- Rural Treatment -0.0163 -0.0342 -0.0205 0.0923 [0.0292] [0.0309] [0.0344] [0.0275]*** Urban 0.194 0.170 0.193 -0.0150 [0.0269]*** [0.0301]*** [0.0305]*** [0.0179] urban x Treatment 0.00348 0.0375 0.00574 -0.0746 [0.0355] [0.0407] [0.0420] [0.0339]** Constant 0.682 0.699 0.692 0.109 [0.0237]*** [0.0253]*** [0.0263]*** [0.0149]*** Table 6.3: Impacts on Consumption – Education Services – Gender of Main Beneficiary Treatment -0.0236 -0.0200 -0.0289 0.0560 [0.0261] [0.0296] [0.0304] [0.0211]*** female beneficiary 0.0321 0.0570 0.0198 -0.0124 [0.0200] [0.0265]** [0.0270] [0.0157] Treatment x female -0.00997 -0.0385 0.0121 0.00608 beneficiary [0.0310] [0.0392] [0.0377] [0.0253] Constant 0.765 0.760 0.773 0.106 [0.0197]*** [0.0222]*** [0.0221]*** [0.0110]*** Table 6.3: Impacts on Consumption – Education Services – Education Level of Household Head Treatment -0.0209 -0.0288 -0.0315 0.0826 [0.0257] [0.0283] [0.0303] [0.0221]*** primary completed 0.143 0.140 0.110s 0.00857 [0.0228]*** [0.0297]*** [0.0300]*** [0.0198] Secondary completed 0.203 0.195 0.173 0.0556 [0.0273]*** [0.0342]*** [0.0353]*** [0.0220]** Treatment x primary -0.0533 -0.0577 -0.00830 -0.0132 completed [0.0352] [0.0451] [0.0444] [0.0348] Treatment x secondary 0.0432 0.0475 0.0734 -0.122 completed [0.0348] [0.0426] [0.0448] [0.0337]*** Constant 0.716 0.722 0.734 0.0915 [0.0198]*** [0.0213]*** [0.0223]*** [0.0105]*** Observations (N) 3,110 2,059 2,013 2543 (5) Ages 6-14 avg. school days missed in the last 4 weeks 0.165 [0.0726]** 0.346 [0.0501]*** 0.188 [0.114]* -0.104 [0.0973] -0.0661 [0.142] 0.397 [0.0880]*** 0.196 [0.0889]** 0.0470 [0.109] -0.0903 [0.135] 0.328 [0.0603]*** 0.224 [0.0779]*** 0.158 [0.0973] 0.200 [0.100]** 0.0190 [0.165] -0.383 [0.133]*** 0.286 [0.0464]*** 3110 26 Table 7: Impacts on Savings and Investments Table 7.1: Impacts on Savings and Investments – Overall Variables Household Household Total Household had savings participated household member set account in in osusu in savings up new last 3 months last 3 (past 3 enterprise in months mos.) last 3 mos. Treatment -0.0135 0.0408 6,133 0.247 [0.00958] [0.0206]** [7,938] [0.0283]*** Constant 0.0641 0.260 77,636 0.0887 [0.00732]*** [0.0147]*** [6,160]*** [0.00967]*** Table 7.2: Impacts on Savings and Investments – Urban- rural Treatment -0.00278 0.0501 14,624 0.289 [0.00658] [0.0295]* [7,704]* [0.0325]*** urban 0.0904 -0.0528 53,085 0.0521 [0.0123]*** [0.0290]* [11,432]*** [0.0187]*** urban x Treatment -0.0195 -0.0206 -15,946 -0.0838 [0.0164] [0.0402] [14,876] [0.0567] Constant 0.0188 0.287 51,032 0.0626 [0.00548]*** [0.0205]*** [4,720]*** [0.00932]*** Table 7.3: Impacts on Savings and Investments – Gender of Main Beneficiary Treatment -0.0154 0.0311 1,325 0.213 [0.0110] [0.0234] [8,335] [0.0291]*** female beneficiary -0.0125 0.0357 856.1 -0.0131 [0.00944] [0.0200]* [7,824] [0.0171] Treatment x female 0.00630 0.0265 9,764 0.0821 beneficiary [0.0126] [0.0285] [10,432] [0.0315]*** Constant 0.0675 0.248 77,782 0.0911 [0.00843]*** [0.0171]*** [6,480]*** [0.0109]*** Table 7.4: Impacts on Savings and Investments – Education Level of Household Head Treatment -0.0175 0.0500 10,397 0.241 [0.00661]*** [0.0253]** [7,556] [0.0255]*** primary completed 0.0317 0.0111 28,939 0.00715 [0.0127]** [0.0248] [8,934]*** [0.0158] Secondary completed 0.148 -0.0360 80,229 0.0871 [0.0241]*** [0.0278] [14,620]*** [0.0258]*** Treatment x primary -0.00141 0.0334 -8,198 0.111 completed [0.0151] [0.0381] [12,474] [0.0439]** Treatment x secondary 0.0384 -0.0628 -8,189 -0.0832 completed [0.0349] [0.0387] [20,346] [0.0448]* Constant Observations (N) 0.0334 [0.00586]*** 5314 0.260 [0.0175]*** 5314 58,288 [5,444]*** 5323 0.0674 [0.00902]*** 5304 Amount spent on household improvements (past 2 months) 7,470 [3,357]** 22,622 [2,143]*** Amount spent on own businesses (past 2 months) 650.6 [4,622] 42,223 [3,670]*** 8,030 [3,558]** 12,935 [4,122]*** -621.3 [6,593] 16,124 [2,455]*** 15,783 [5,343]*** 40,847 [6,451]*** -30,257 [8,521]*** 22,011 [3,885]*** 7,950 [4,000]** -4,518 [3,594] 230.9 [5,416] 2,246 [5,535] 191.6 [5,447] -3,224 [7,203] 23,937 [2,426]*** 41,856 [4,307]*** 10,118 [3,013]*** 9,664 [4,713]** 35,503 [8,946]*** -7,322 [6,085] -5,807 [12,477] 4,795 [4,841] 22,063 [6,892]*** 28,684 [10,440]*** -19,328 [8,864]** 5,976 [13,543] 15,048 [1,726]*** 5012 32,532 [3,665]*** 5001 27 Table 8: Impacts on Social Cohesion Table 8.1: Impacts on Social Cohesion - Overall (1) (2) Variables Dummy: Dummy: high trust high trust household extended member family Treatment 0.0450 0.0645 [0.0190]** [0.0147]*** Constant 0.459 0.158 [0.0119]*** [0.00891]*** (3) Dummy: high trust community member 0.00533 [0.0104] 0.0999 [0.00792]*** (4) Dummy: high trust same ethnicity -0.0386 [0.0118]*** 0.128 [0.00939]*** (5) Dummy: high trust same religion 0.0471 [0.0168]*** 0.196 [0.0117]*** (6) Dummy: high trust diff. ethnicity -0.0280 [0.00976]*** 0.102 [0.00746]*** (7) Dummy: high trust diff. religion Table 8.2: Impacts on Social Cohesion – Urban-rural Treatment 0.0465 0.111 [0.0265]* [0.0188]*** urban -0.00758 0.0533 [0.0238] [0.0172]*** urban x Treatment -0.00322 -0.0948 [0.0379] [0.0289]*** Constant 0.463 0.132 [0.0165]*** [0.0120]*** -0.00368 [0.0150] -0.0229 [0.0157] 0.0178 [0.0208] 0.111 [0.0119]*** -0.0682 [0.0160]*** -0.0440 [0.0183]** 0.0594 [0.0233]** 0.150 [0.0133]*** -0.00805 [0.0217] -0.0477 [0.0229]** 0.112 [0.0329]*** 0.220 [0.0161]*** -0.0323 [0.0143]** -0.0179 [0.0148] 0.00835 [0.0194] 0.111 [0.0110]*** -0.0212 [0.0156] 0.00250 [0.0142] 0.0120 [0.0220] 0.109 [0.0110]*** Table 8.3: Impacts on Social Cohesion – Gender of Main Beneficiary Treatment 0.0518 0.0662 0.00101 -0.0355 [0.0211]** [0.0172]*** [0.0122] [0.0135]*** female beneficiary 0.0120 -0.00258 -0.00263 0.0117 [0.0223] [0.0152] [0.0151] [0.0173] Treatment x female -0.0219 -0.00357 0.0133 -0.00976 beneficiary [0.0300] [0.0223] [0.0194] [0.0212] Constant 0.456 0.157 0.101 0.124 [0.0133]*** [0.0106]*** [0.00907]*** [0.0110]*** 0.0577 [0.0198]*** 0.00530 [0.0193] -0.0252 [0.0274] 0.193 [0.0139]*** -0.0179 [0.0112] 0.0208 [0.0156] -0.0236 [0.0194] 0.0933 [0.00842]*** 0.000449 [0.0129] 0.0233 [0.0163] -0.0376 [0.0211]* 0.101 [0.00876]*** Table 8.4: Impacts on Social Cohesion – Education Level of Household Head Treatment 0.00945 0.0695 0.00197 -0.0526 [0.0227] [0.0177]*** [0.0134] [0.0144]*** primary completed 0.0262 0.00982 -0.0353 -0.0433 [0.0261] [0.0212] [0.0143]** [0.0172]** Secondary completed 0.0428 0.0551 0.00866 -0.0173 [0.0307] [0.0248]** [0.0176] [0.0173] Treatment x primary 0.0845 0.0266 0.0337 0.0402 completed [0.0381]** [0.0294] [0.0227] [0.0228]* Treatment x secondary 0.102 -0.0636 -0.0217 0.0472 completed [0.0444]** [0.0368]* [0.0231] [0.0257]* Constant 0.446 0.147 0.106 0.139 [0.0135]*** [0.0117]*** [0.0106]*** [0.0122]*** Observations (N) 5,310 5,317 5,318 5,317 0.0120 [0.0191] -0.0277 [0.0211] -0.00911 [0.0246] 0.0476 [0.0300] 0.160 [0.0369]*** 0.203 [0.0139]*** 5,316 -0.0402 [0.0122]*** -0.0355 [0.0152]** -0.0189 [0.0155] 0.0507 [0.0224]** 0.0207 [0.0200] 0.111 [0.00999]*** 5,317 -0.0235 [0.0134]* -0.000818 [0.0179] -0.00591 [0.0167] 0.0257 [0.0239] 0.0139 [0.0231] 0.111 [0.00981]*** 5,313 -0.0154 [0.0110] 0.111 [0.00709]*** 28 Figures Figure 1: Randomized Phase-In Design Figure 2a: Geographical distribution of sub-projects Figure 1b: Geographical location of treatment sites 29 Figure 3: Targeting performance of CfW program 30
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