Effects of Cash-Transfer Programs New Evidence From Uganda

Purpose We explore the impact of a unique universal, unconditional cash-transfer project, the LIFE-project, in Welle, Uganda. Study Design Employing mixed methods with difference-in-differences estimates and interviews, we focus on the effects of the LIFE-project on economic, health and well-being, as well as social cohesion outcomes. Findings We find that the LIFE-project has positive effects on the residents of Welle along several dimensions, including sustainable livelihoods, total consumption, physical health, emotional well-being, and social cohesion. Contributions The unique combination of features of the LIFE-project enables us to explore challenges outlined in the literature, as well as some novel questions, including those related to the inclusion of minors in cash-transfer programs and changes in social cohesion resulting from cash transfers. Implications Local institutional incentives and enforcement mechanisms for tackling communal challenges and emerging conflicts, as well as community-managed funds, are of key importance for cash transfers to succeed.