Impacts of Cash Transfers on Poverty and Education

Cash transfer programs can significantly reduce poverty and enhance educational outcomes. The Mexican conditional cash transfer program, PROGRESA, is a prime example, showing long-term benefits that include increased school enrollment and improved health outcomes not only for targeted individuals but also for non-targeted members of their households. Research on the South African Older Persons Grant highlights how cash transfers to grandmothers positively influence the education and health of their grandchildren. These programs can trigger substantial economic multipliers, exemplified by the GiveDirectly transfer in Kenya, where every dollar transferred generates nearly two dollars in additional economic activity.