This paper examines the direct and spillover effects of cash transfers paid in a rural and low-income setting. In the short run, an unconditional cash transfer program for ultrapoor households in Northern Nigeria led to a 12 percentage point increase in microenterprise formation for program recipients. Moreover, benefits continued to increase in magnitude after program cessation and also extended to nearby non-beneficiary households when compared to counterparts in other villages where no cash transfers were paid. One year after program cessation, beneficiary women increased their enterprise ownership rate by 20 percentage points, while the rate for non-beneficiary women increased by 13 percentage points. Both groups of households enjoyed higher consumption and food security, and shifted away from husband-centered toward joint intrahousehold decision-making. One mechanism for this growth spillover is a boost to aggregate demand for local goods, in part identified by the positive link between the (randomly determined) neighborhood density of cash transfer households and enterprise creation. The increase in local female entrepreneurial activity translates to a partial income multiplier of at least 0.32. Women face restrictive social norms around work in this context and the slack productive resource brought into activity by the cash transfer is female labor, specifically female-led entrepreneurship near the home.
Repository name | URI |
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Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Paper exhibits were reproduced on a computer with the following specifications:
– Windows 10 Enterprise, version 22H2
– Processor: Intel(R) Xeon(R) Gold 6226R CPU @ 2.90GHz 2.90 GHz (2 processors)
– Memory available: 32 GB
– Software version: StataNow 18.5 MP-Parallel Edition, R 4.4.1
Runtime: 9 hours
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MasterDofile_CashIsQueen.do
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Author | Affiliation | |
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Jed Friedman | World Bank | jfriedman@worldbank.org |
Sreelakshmi Papineni | World Bank | spapineni@worldbank.org |
Markus Goldstein | Center for Global Development | mgoldstein@cgdev.org |
Paula Gonzalez | World Bank | pgonzalezmartine@worldbank.org |
2025-04-15
Location | Code |
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Nigeria | NGA |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
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Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
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Paula Gonzalez | World Bank | pgonzalezmartine@worldbank.org |
Reproducibility WBG | World Bank | reproducibility@worldbank.org |
Name | Abbreviation | Affiliation | Role |
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Reproducibility WBG | DIME | World Bank - Development Impact Department | Verification and preparation of metadata |
2025-04-15
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