Customized Cash Transfers: Financial Lives and Cash-flow Preferences in Rural Kenya / Carolina Kansikas, Anandi Mani, Paul Niehaus.

Format:

Book

Author/Creator:

Kansikas, Carolina.

Contributor:

National Bureau of Economic Research.

Mani, Anandi.

Niehaus, Paul.

Series:

Working Paper Series (National Bureau of Economic Research) no. w30930.

NBER working paper series no. w30930

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

We examine the preferences of low-income households in Kenya over the structure of unconditional cash transfers. We find, first, that most prefer lumpier transfers, and many prefer delayed receipt--unlike the structures typical of safety-net programs, but consistent with evidence on the financial challenges of poverty. Second, poverty itself affects preferences: a little more financial slack when deciding increases desired delay. Finally, financial slack pays back: some delay--aligning transfers better with the seasonal cycle--increases deliberation, income, and goal progress 1.5 years later. Adapting cash transfer design to recipients' decision-making environment could improve their financial choices and outcomes.

Notes:

Print version record

February 2023.