We re-analyze the data from seven randomized controlled trials of government-run cash transfer programs in six developing countries throughout the world, and find no systematic evidence that cash transfer programs discourage work.”

The idea that direct cash transfer programs discourage work is one of the most persistent, and least substantiated, ideas of our time. While past generations took this assumption as self-evident, waves of new research are challenging the idea, finding that direct cash transfers do not discourage work, and often, even stimulate entrepreneurship.

empirical