The impacts of cash transfers on mental health and investments: Experimental evidence from Mali

Stress and cognitive burden associated with poverty constrain decision- making regarding investments in the future, which can in turn perpetuate poverty. We exploit the randomized roll-out of Mali's national cash transfer program to estimate its impact on measures of psychological and emotional well...

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Main Authors: Hidrobo, Melissa, Karachiwalla, Naureen, Roy, Shalini
Format: Journal Article
Language:Inglés
Published: Elsevier 2023
Subjects:
Online Access:https://hdl.handle.net/10568/139968
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author Hidrobo, Melissa
Karachiwalla, Naureen
Roy, Shalini
author_browse Hidrobo, Melissa
Karachiwalla, Naureen
Roy, Shalini
author_facet Hidrobo, Melissa
Karachiwalla, Naureen
Roy, Shalini
author_sort Hidrobo, Melissa
collection Repository of Agricultural Research Outputs (CGSpace)
description Stress and cognitive burden associated with poverty constrain decision- making regarding investments in the future, which can in turn perpetuate poverty. We exploit the randomized roll-out of Mali's national cash transfer program to estimate its impact on measures of psychological and emotional well-being, time preferences, and cognitive function among households’ primary decision-makers. We find that receiving transfers reduced decision-makers’ self-reported stress and worry, as well as improved their self-esteem. The program did not affect measures of cognitive function but led to a modest increase in a measure of patience. Consistent with reduced stress, improved self-esteem, and increased patience, the program also increased investments in productive assets. Results suggest that, in addition to cash transfers providing the economic resources to support investments in the future, they may also build psycho-social well-being for supporting these investments.
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spelling CGSpace1399682025-10-26T13:02:00Z The impacts of cash transfers on mental health and investments: Experimental evidence from Mali Hidrobo, Melissa Karachiwalla, Naureen Roy, Shalini stress mental health social protection cash transfers decision making poverty Stress and cognitive burden associated with poverty constrain decision- making regarding investments in the future, which can in turn perpetuate poverty. We exploit the randomized roll-out of Mali's national cash transfer program to estimate its impact on measures of psychological and emotional well-being, time preferences, and cognitive function among households’ primary decision-makers. We find that receiving transfers reduced decision-makers’ self-reported stress and worry, as well as improved their self-esteem. The program did not affect measures of cognitive function but led to a modest increase in a measure of patience. Consistent with reduced stress, improved self-esteem, and increased patience, the program also increased investments in productive assets. Results suggest that, in addition to cash transfers providing the economic resources to support investments in the future, they may also build psycho-social well-being for supporting these investments. 2023-12 2024-03-14T12:08:47Z 2024-03-14T12:08:47Z Journal Article https://hdl.handle.net/10568/139968 en https://doi.org/10.2499/p15738coll2.134223 Open Access Elsevier Hidrobo, Melissa; Karachiwalla, Naureen; and Roy, Shalini. 2023. The impacts of cash transfers on mental health and investments: Experimental evidence from Mali. Journal of Economic Behavior and Organization 216(December 2023): 608-630. https://doi.org/10.1016/j.jebo.2023.10.016
spellingShingle stress
mental health
social protection
cash transfers
decision making
poverty
Hidrobo, Melissa
Karachiwalla, Naureen
Roy, Shalini
The impacts of cash transfers on mental health and investments: Experimental evidence from Mali
title The impacts of cash transfers on mental health and investments: Experimental evidence from Mali
title_full The impacts of cash transfers on mental health and investments: Experimental evidence from Mali
title_fullStr The impacts of cash transfers on mental health and investments: Experimental evidence from Mali
title_full_unstemmed The impacts of cash transfers on mental health and investments: Experimental evidence from Mali
title_short The impacts of cash transfers on mental health and investments: Experimental evidence from Mali
title_sort impacts of cash transfers on mental health and investments experimental evidence from mali
topic stress
mental health
social protection
cash transfers
decision making
poverty
url https://hdl.handle.net/10568/139968
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