one problem with this kind of study is that it ignores the price effects of transfers cash transfers essentially reduce the cost of obtaining services and thus should lead to higher demand for example for children s education or usage of social services for example healthcare centres therefore the net effect of cash transfers should depend on the relative size of the price and income effects more importantly such findings of adverse incentive effects or negative income effects on labour supply imply that the poor are poor either because they are lazy in other words they prefer more leisure or because their expectations are low in other words they work for a low minimum target income