A growing body of research over the past decade has examined the impact of direct welfare payments to families living in poverty. Now, a new meta-analysis combining studies across 45 countries offers one of the clearest pictures yet of how unconditional cash transfers benefit women more than other forms of payment. The study, published in the journal “Nature Human Behavior,” analyzed dozens of social security programs and found that unconditional payments produced an effect size more than twice that of conditionally funded cash transfers. 

Benefits included higher labor force participation, increased work productivity, lower debt levels and greater autonomy and decision-making power. The analysis found little evidence of so-called dependency effects, the concern that recipients reduce work effort after receiving benefits.

Conditional Cash Can Increase Women’s Burden of Work

The international research team, led by Amber Peterman at the University of North Carolina at Chapel Hill, argued that unconditional cash transfers may be more effective because they increase women’s choices and freedom. The researchers wrote: 

“Some studies point to potential adverse effects or unintended consequences of social security nets for women. A common example raised is the potential for cash transfers with conditions to increase women’s unpaid care burden, reinforcing their involvement in child care or domestic work. This might occur if programs designate women as responsible for attending mandatory training associated with the intervention or for monitoring children’s schooling or health due to co-responsibilities.”

The authors acknowledged several limitations with their analysis, including the short-term nature of many studies. They were also unable to include studies published in French or Spanish, thereby limiting the generalizability of the findings. However, they remained relatively confident that unconditional cash transfers yield the greatest benefit for women compared to other forms of aid.

Unconditional Welfare Payments

One of the largest programs, Brazil’s Bolsa Família, was launched in 2003. Research shows the transfers helped mothers enter the labor market by increasing children’s school enrolment, without weakening incentives to work. In the nonprofit sector, GiveDirectly has emerged as a leading advocate for unconditional cash payments.

The organization argues that direct transfers bypass much of the bureaucracy and the administrative costs associated with traditional aid models. These include food distribution, training programs and other service-based interventions. One of its flagship programs in Kenya delivered one-off payments of $1,000 to more than 10,000 households between 2014 and 2017.

Program researchers say the initiative reduced infant mortality by 48% and achieved other gains. Miriam Laker-Oketta, a Ugandan doctor and senior research adviser at GiveDirectly, told the Guardian last year: “The problem with big aid organizations is that their approach is based on training and advice. They tell people what to do and how to spend their money. But whether in Uganda, Yemen, India or the U.S., direct cash support has shown that when people living in poverty receive money, they know best what matters to them and they invest in that.” 

Caution Regarding the Inflationary Effect

Still, some economists urge caution about direct cash payments. World Bank economist Eeshani Kandpal, who has studied cash transfer programs in the Philippines, points to research showing negative spillovers. Transfers can raise local prices for certain staple foods and increase stunting rates among children in households that did not receive payments.

Kandpal adds that smaller, short-term transfers targeted to fewer recipients within each village or market are less likely to trigger inflation. Despite ongoing debate over design and potential unintended consequences, there is growing evidence supporting direct money transfers. Unconditional cash transfers generate the greatest benefit for women compared to other forms of payment or aid.

– Lawrence Dunhill

Lawrence is based in London, UK and focuses on Technology and Global Health for The Borgen Project.

Photo: Wikimedia Commons