Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations

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[email protected] www.e-mfp.eu Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations Bram Thuysbaert Yale University and IPA November 15, 2012 With A.Banerjee, E. Duflo, D. Karlan, J. Morduch, and others Preliminary and Incomplete

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Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations. Bram Thuysbaert Yale University and IPA November 15, 2012. With A.Banerjee, E. Duflo, D. Karlan, J. Morduch, and others Preliminary and Incomplete. - PowerPoint PPT Presentation

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Page 1: Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations

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Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized

Evaluations

Bram ThuysbaertYale University and IPA

November 15, 2012

With A.Banerjee, E. Duflo, D. Karlan, J. Morduch, and othersPreliminary and Incomplete

Page 2: Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations

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Pilots in 10 Sites

Pilot sponsored by CGAP and Ford Foundation: Ghana, Haiti, Honduras, India(3), Ethiopia, Pakistan, Peru, Yemen

Randomized evaluations at 8 sites ( )

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Who are the Ultra Poor? A few facts Most had at least 2 meals

previous day India: 62% Pakistan: 75% Yemen: 87.5% Ethiopia: 83%But most also faced food shortages

in at least some months in the past year

Large share of expenses spent on food and fuel: Pakistan: 54% India: 72% Peru: 70% Yemen: 69%

Pakistan

Yemen

In past 12 months, did HH members get enough food?

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Who are the Ultra Poor? Vulnerable to shocks

India: 29% of selected HH experience 1 or more health shock in past year

Pakistan: Medical expenses 12% of HH budget

Remote areas More than 1 hour to nearest

health center Peru: 24-30% Honduras: 28-58%

Page 5: Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations

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Fundamental research question

What is the impact of the Graduation model on the ultra poor? Impact evaluation measures:

How have the lives of households changed compared to how they would have changed in the absence of the program?

Note this is different from “How have their lives changed?”

The control group gives us the counterfactual Random treatment assignment

ensures we compare similar types of households

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Data collection

Baseline

Consumption surveys

2nd follow-up survey

1st follow-up survey

Collect data on eligible households

Many sites have quarterly surveys to monitor changes

Survey of same baseline households after 2 years (end of program support)

1 year after 1st follow-up survey to track more long-term impacts

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Sample size Many 100’s of households in

a few tens of villages Survey modules Health indicators Education Consumption Income and activities Assets Credit Risk preferences Ongoing qualitative research

Data collection

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Asset transfersHonduras

Pakistan

Ethiopia

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Preliminary Results

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Results from 2nd follow-up survey:

Consumptiono 7% increase in food

consumptiono 20% increase in non-food

consumption

Improved food securityo 14 percentage points

increase in share of households that report having enough food every day

India – West Bengal (Bandhan)Researchers: Banerjee, Duflo et al.

Page 11: Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations

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Livestock holdingso Large effect on animal

holdings (years after asset transfer!)

Income generationo Increased income from

livestocko Increase in profits from

micro-enterprises

Household durableso Significant increase in HH

durables index

India – West Bengal (Bandhan)

Page 12: Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations

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Savings and borrowingo Suggestive evidence of

increase in savings deposited in last 30 days (not statistically significant)

o 52.9% increase in total borrowing

Healtho Increase in health knowledgeo Large gains in mental health

at 1st follow-up but no longer at 2nd follow-up

India – West Bengal (Bandhan)

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Results from 2nd follow-up survey: Consumption

o No effects on consumption or food security

Income generationo Increased income from

livestocko But self-employment

displaces wage laboro No net effect on income

Livestocko Effect on livestock holdings

but decreasing over time Savings and borrowing

o No effects

India – Andra Pradesh(SKS)Researchers: Morduch, Ravi and Bauchet

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PakistanResearchers: Karlan and Pariente

Results from 1st follow-up survey:

Consumptiono 10% increase in monthly

consumption• food consumption• emergency expenses

Improved food securityo Increase in share of

households that eat twice a day (3 % points)

o Decrease in share of households that experience food shortages

Page 15: Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations

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Pakistan

Income generationo Important increase in

agricultural outputo Increase in micro-

enterprise profitso No clear effects on

livestock income

Assetso Increase in livestock

holdingso Increase in physical assets

Page 16: Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations

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HondurasResearchers: Karlan and Thuysbaert

Consumption and non -food expenditureso No effects

Improvement in food security and in self-assessed economic situationo Adults 5 percentage points

less likely to have reduced meals

o Improved perception of own economic situation

Page 17: Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations

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Honduras Income generation

o No effects on overall agricultural output nor business profits

o Increase in vegetable productiono Increased income from livestock

Livestocko 25% increase in total value of

livestock owned Savings

o Increased savings Mental health

o Improvement in happiness index

Page 18: Impact of Ultra-Poor Graduation Pilots: Early Results from Randomized Evaluations

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Conclusion

First results very promising Enlarged asset base More self-employment Improved food security Increased food and non-food consumption Improved happiness …

But variation across sites Are some areas less suitable for graduation model than others? Choice of livelihoods?

Critical questions for evaluation Long term Cost-effectiveness

No definitive answers yet More data and analysis coming soon!

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Thank You!

[email protected]

www.cgap.org