The Effect of Receiving Cash Grant on Monthly Earnings.
Notes. Robust standard errors in parentheses. OLS estimation is applied. Control variables are, the receipt of mentorship dummy, monthly earnings at the baseline, years of schooling, no education dummy, gender dummy (full sample), marital status, household size, head of household dummy, age group dummies, province dummies, language dummies, new to business dummies, zero earnings dummy, number of plots, the house ownership dummy, non-agricultural business dummy, having animal livestock dummy. All control variables are from the baseline information. The estimated coefficients of control variables are shown in Table S1 of Extended Data *** p<0.01, ** p<0.05, * p<0.1.(48000/33500) × 100 = 143%.Column (2) displays the effect of receiving a cash grant on monthly earnings in the male group. It shows that receiving the cash grant increased the monthly earnings by about 4839 Afs, and therefore the percentage of the increased annual income to the amount of the cash grant for this group was 173 %.Column 3 displays the effect of receiving the grant on monthly income on the female group. The column shows that receiving the cash grant increased the monthly earnings by about 1900 Afs, which is less than half of the estimated effect on the male group. It implies that the percentage of the increased annual income to the amount of the cash grant for this group was 69 %.Thus, in either of three cases, if the state of increased income continues for the next few years, the sum of increased income will be more than the sum of the administration cost, the interest cost and the amount of cash grant given. It implies that the project passes the standard criteria to determine the appropriateness of government program.In columns 4 – 6, we added several important covariates and checked whether our estimated coefficients were sensitive to the inclusion of those control variables. These columns indicate that the estimated coefficients of the grant variable reported in columns 1 – 3 are not sensitive to the inclusion of various control variables (Extended data) (
As mentioned previously, the endline study sample size was much smaller than that of the baseline due to the administrative error during the data collection. One concern was whether such attrition of the sample affects the estimated coefficients. Therefore, we controlled for the attrition by applying the inverse probability weighted (IPW) estimation (
