Evaluation
Providing cash grants to low-income households without any strings attached has been proven to have various benefits on the lives of those who receive the transfers, but less is known about how this sudden influx of income affects the local economy and people living nearby. In western Kenya, researchers evaluated the impact of unconditional cash transfers, provided by the organization GiveDirectly, on household well-being and local economic activity. The transfers led to large increases in consumption and assets for recipients, as well as large positive impacts on consumption for non-recipient households and on revenue for firms. These results counter concerns that large cash transfers may harm those who do not receive them.