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Original Articles

Cash Transfer Programme, Productive Activities and Labour Supply: Evidence from a Randomised Experiment in Kenya

, , , &
Pages 1172-1196
Accepted 30 Jan 2014
Published online: 27 Jun 2014
 

Abstract

This paper reports the analysis of the impact of Kenya’s Cash Transfer for Orphans and Vulnerable Children Programme on the household decisions on productive activities using data from a randomised experimental design. Results show that the programme had a positive and significant impact on food consumption coming from home production, accumulation of productive assets, especially on the ownership of small livestock, and on formation of nonfarm enterprise, especially for females. The programme has provided more flexibility to families in terms of labour allocation decisions, particularly for those who are geographically isolated. The programme was also found to reduce child labour, an important objective of the programme. However, we find very little impact of the programme on direct indicators of crop production.

Acknowledgments

We would like to thank participants at two workshops at the Department of Child Services in Nairobi and the Transfer Project workshop in Aberdares for comments and suggestions. We also thank Carolyn Huang for research assistance and also FAO team members for technical inputs. Errors are the responsibility only of the authors, and this paper reflects the opinions of the authors, and not the institutions which they represent or with which they are affiliated. This research forms part of the From Protection to Production Project (http://www.fao.org/economic/ptop/en/), supported financially by United Kingdom Department for International Development (DFID). The 2011 survey round was funded by the U.S. National Institute of Mental Health through Grant Number 1R01MH093241 and by Eunice Kennedy Shriver National Institute of Child Health and Development R24 HD050924 to the Carolina Population Center.

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