Mr Banerjee, Ms Duflo and several others economist conducted a research to investigate whether a multifaceted graduation program can help the extreme poor establish sustainable self-employment activities and generate lasting improvements in their well-being.
Multi-pronged approach is relatively expensive to implement, but the theory of change is that the combination of these activities is necessary and sufficient to obtain a persistent impact on poor. The program targets the poorest members in a village and provides a productive asset grant, training and support, life skills coaching, temporary cash consumption support, and typically access to savings accounts and health information or services. In each country, the program was adjusted to suit different contexts and cultures, while staying true to the same overall principles.
Research conducted six randomized trials in Ethiopia, Ghana, Honduras, India, Pakistan, and Peru, with more than 10,000 poor household, they concluded multifaceted approach to increasing income and well-being for the ultrapoor is sustainable and cost-effective. Study claim, a year after the conclusion of the program, and 3 years after the asset transfer, are program participants earning more income and achieving stable improvements in their well-being.
following figure summarize the out come of the average treatment effect in standardized mean scores compared to the control group.
The slide set on this study which prepared for internal journal club can be accessed here
Comments are closed.