Public Works as a Safety Net

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Daniel Gilligan, John Hoddinott, Neha Kumar, and Alemayehu Seyoum Taffesse, “An Impact Evaluation of Ethiopia’s Productive Safety Nets Program” (Washington, DC: International Food Policy Research Institute, 2009).

Quantitative methods: • Panel data collected in three surveys in 2002, 2006, and 2007 in the Amhara region. • Regression analysis. • Propensity score matching.

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Quantitative methods: Impact • The program improves food security by 0.40 months and increases growth in live- • Panel data collected in 2006 and 2008. stock holdings by 0.28 Tropical Livestock Units (TLUs). • Matching methods. • Program impacts on asset accumulation are greater when higher levels of transfers are received and when participants have access to both the PSNP and the OFSP. On average, households receiving high levels of transfers (defined as more than 900 birr over the first 5 months of 2006, 2007, and 2008) had a 14.3 percent higher growth rate in the value of their livestock holdings. • High levels of transfers and access to the OFSP improved food security between 2006 and 2008 by 0.45 months. • Households receiving more than 900 birr but receiving transfers irregularly save a larger fraction of their transfers in the form of livestock than households receiving the same amount but on a more regular basis. However, households with irregular transfers are more likely to report distress sales. • There is no meaningful evidence that participation in public works employment has a disincentive effect on household labor employed in nonfarm own-business activities, wage employment, or work on the family farm.

Impact of PSNP on livestock and tree holding Camila Andersson, Alemu The study found no indication that participation in PSNP leads households to disinMekonnen, and Jesper Stage, “Impacts of the Pro- vestment in livestock or trees. The number of trees increased for households that participated in the program. The study elaborates on the possible reasons for these ductive Safety Net Proresults, such as participants acquiring skills in forestry during the program. The fact gram in Ethiopia on Livestock and Tree Holdings of that tree planting is less labor intensive than other activities or increases in wood prices made tree planting more profitable is also explored. Having a secure income Rural Households,” Journal of Development Economics from the program while trees mature would encourage farmers to undertake tree planting 94 (2011): 119–26.


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