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Debunking the Stereotype of the Lazy Welfare Recipient

CID Working Paper No. 308

Abhijit Banerjee, Rema Hanna, Gabriel Kreindler, and Benjamin A. Olken
October 2015

Abstract:

Targeted transfer programs for poor citizens have become increasingly common in the developing world. Yet, a common concern among policy makers - both in developing as well as developed countries - is that such programs tend to discourage work. We re-analyze the data from 7 randomized controlled trails of government-run cash transfer programs in six developing countries throughout the world, and find no systematic evidence that cash transfer programs discourage work.

Affiliated Research Program: Evidence for Policy Design