Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/61401
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dc.contributor.authorBlattman, Christopheren_US
dc.contributor.authorFiala, Nathanen_US
dc.contributor.authorMartinez, Sebastianen_US
dc.date.accessioned2012-08-24en_US
dc.date.accessioned2012-08-27T12:52:52Z-
dc.date.available2012-08-27T12:52:52Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/61401-
dc.description.abstractCan cash transfers promote employment and reduce poverty in rural Africa? Will lower youth unemployment and poverty reduce the risk of social instability? We experimentally evaluate one of Uganda's largest development programs, which provided thousands of young people nearly unconditional, unsupervised cash transfers to pay for vocational training, tools, and business start-up costs. Mid-term results after two years suggest four main findings. First, despite a lack of central monitoring and accountability, most youth invest the transfer in vocational skills and tools. Second, the economic impacts of the transfer are large: hours of nonhousehold employment double and cash earnings increase by nearly 50% relative to the control group. We estimate the transfer yields a real annual return on capital of 35% on average. Third, the evidence suggests that poor access to credit is a major reason youth cannot start these vocations in the absence of aid. Much of the heterogeneity in impacts is unexplained, however, and is unrelated to conventional economic measures of ability, suggesting we have much to learn about the determinants of entrepreneurship. Finally, these economic gains result in modest improvements in social stability. Measures of social cohesion and community support improve mildly, by roughly 5 to 10%, especially among males, most likely because the youth becomes a net giver rather than a net taker in his kin and community network. Most strikingly, we see a 50% fall in interpersonal aggression and disputes among males, but a 50% increase among females. Neither change seems related to economic performance nor does social cohesion - a puzzle to be explored in the next phase of the study. These results suggest that increasing access to credit and capital could stimulate employment growth in rural Africa. In particular, unconditional and unsupervised cash transfers may be a more effective and cost-efficient form of large-scale aid than commonly believed. A second stage of data collection in 2012 will collect longitudinal economic impacts, additional data on political violence and behavior, and explore alternative theoretical mechanisms.en_US
dc.language.isoengen_US
dc.publisher|aDeutsches Institut für Wirtschaftsforschung (DIW) |cBerlinen_US
dc.relation.ispartofseries|aDIW Discussion Papers |x1201en_US
dc.subject.jelO12en_US
dc.subject.jelO15en_US
dc.subject.ddc330en_US
dc.subject.keywordCash granten_US
dc.subject.keywordrandomized control trialen_US
dc.subject.keywordcredit constraintsen_US
dc.subject.keywordpsychological and social impactsen_US
dc.titleEmployment generation in rural Africa: Mid-term results from an experimental evaluation of the youth opportunities program in Northern Ugandaen_US
dc.typeWorking Paperen_US
dc.identifier.ppn722234775en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:diw:diwwpp:dp1201en_US

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