The Comparative Impact of Cash Transfers and a Psychotherapy Program on Psychological and Economic Well-being

89 Pages Posted: 4 Mar 2021

See all articles by Johannes Haushofer

Johannes Haushofer

Research Institute of Industrial Economics (IFN); Stockholm University - Department of Economics; Max Planck Institute for Research on Collective Goods

Robert Mudida

affiliation not provided to SSRN

Jeremy Shapiro

Busara Center for Behavioral Economics

Multiple version iconThere are 2 versions of this paper

Date Written: January 4, 2021

Abstract

We study the economic and psychological effects of a USD 1076 PPP unconditional cash transfer, a five-week psychotherapy program, and the combination of both interventions among 5,756 individuals in rural Kenya. One year after the interventions, cash transfer recipients had higher consumption, asset holdings, and revenue, as well as higher levels of psychological well-being than control households. In contrast, the psychotherapy program had no measurable effects on either psychological or economic outcomes, both for individuals with poor mental health at baseline and others. The effects of the combined treatment are similar to those of the cash transfer alone.

JEL Classification: C93, O12, D90

Suggested Citation

Haushofer, Johannes and Mudida, Robert and Shapiro, Jeremy P., The Comparative Impact of Cash Transfers and a Psychotherapy Program on Psychological and Economic Well-being (January 4, 2021). Available at SSRN: https://ssrn.com/abstract=3759722 or http://dx.doi.org/10.2139/ssrn.3759722

Johannes Haushofer (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Stockholm University - Department of Economics ( email )

Stockholms universitet
Stockholm, 106 91
Sweden

Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

Robert Mudida

affiliation not provided to SSRN ( email )

Jeremy P. Shapiro

Busara Center for Behavioral Economics ( email )

Nairobi
Kenya

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