Wednesday, February 5, 2020
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Study Finds Cash Transfers To Poor Have Positive Ripple Effect

A new study carried out in rural Kenya shows giving cash to the poor is the best way to help someone break the cycle of poverty. “In our case, trusting the poor to spend money on what’s best for them worked very well,” said Ted Miguel, one of the study’s lead authors and Faculty Director for the Center for Effective Global Action at UC Berkeley. Miguel has been visiting rural Kenya for two decades now. During his most recent trip his team gave poor Kenyans $1,000 in cash and saw a stimulus. “There’s been a fear that providing cash, you would give it to poor households that would spend it in unwise ways, that they would buy alcohol drugs or gamble it away. We didn’t find any evidence of that,” Miguel said. Read More