Researchers at the International Food Policy Research Institute (IFPRI) and University of California argue interesting effects of cash transfers.
Hidrobo and Fernald conducted an impact assessment of cash transfers on domestic violence in Ecuador. Through their analysis of randomised household data collected in an unconditional cash transfer programme, Bono de Desarrollo Humano (BDH), they draw interesting results.
The result shows that a cash transfer:
1. Decreases the probability that women are subjected to psychological violence by their partners by 8 percent if they have higher education than 6-year-primary-school-education.
2. Increases the risk that women get emotional violence in households by 9 percent if they have equal or higher education than their partners.
What can Policy Makers do?
The study leaves some challenges to policy makers. How to identify vulnerable women? What to do with those women?
Although an increase in a woman’s income leads to a decrease in domestic violence for many households, there are vulnerable households where domestic violence actually increases as a consequence of the income.
As they argue, the cash transfer programme cannot deal with all issues. But it can be a foundation of supporting the vulnerable. Policy makers could think of what to attach on the system from different specific areas.
Hidrobo, M., Fernald, L. (2013) Cash Transfers and Domestic Violence. Journal of Health Economics, Vol. 32, pp.304-319
Hidrobo, M., Fernald, L. (2012) Cash Transfers and Domestic Violence. Draft Working Paper