author

Johannes Haushofer

Massachusetts Institute of Technology, Poverty Action Lab

Recipients of basic income in Kenya increased their spending relative to control groups by 13.5%. Cash transfers in low and middle income countries do not reduce labor supply. Cash transfers increased economic activity (proxy for GDP at scale) in Kenya (via multiplier effects of 2.46 on expenditures and 2.73 on income). Poverty creates psychological feedback loops that perpetuate & entrench poverty. In rural Kenya, an unconditional cash transfer equivalent to $1,076 had greater positive impacts on psychological (and economic) well-being than a 5-week psychotherapy program
The Comparative Impact of Cash Transfers and a Psychotherapy Program on Psychological and Economic Well-being On the psychology of poverty General equilibrium effects of cash transfers: experimental evidence from Kenya
Basic Income
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