Effects of Cash-Transfer Programs: New Evidence From Uganda

Purpose: We explore the impact of a unique universal, unconditional cash-transfer project, the LIFE-project, in Welle, Uganda.

Study Design: Employing mixed methods with difference-in-differences estimates and interviews, we focus on the effects of the LIFE-project on economic, health and well-being, as well as social cohesion outcomes.

Findings: We find that the LIFE-project has positive effects on the residents of Welle along several dimensions, including sustainable livelihoods, total consumption, physical health, emotional well-being, and social cohesion.

Contributions: The unique combination of features of the LIFE-project enables us to explore challenges outlined in the literature, as well as some novel questions, including those related to the inclusion of minors in cashtransfer programs and changes in social cohesion resulting from cash transfers.

Implications: Local institutional incentives and enforcement mechanisms for tackling communal challenges and emerging conflicts, as well as community-managed funds, are of key importance for cash transfers to succeed.