The Welfare and Labor Market Impacts of the Livelihoods Intervention of the UPSNP
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Washington, DC: World Bank
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Improving the livelihoods of poor
households and transitioning them to the labor force is a
major challenge in Ethiopia. Productive safety nets that
include livelihood grants and other support services could
be a promising intervention toward this end. However, the
evidence on the welfare and labor market impacts of such
interventions is limited. This study provides empirical
evidence on the development impacts of livelihood grants and
support with a focus on welfare and labor market outcomes.
The data for this study come from baseline and livelihoods
endline household surveys undertaken between 2016 and 2022.
The results show that self-employment (compared to wage
employment) is the preferred livelihood modality selected by
PW beneficiaries. Yet, few UPSNP beneficiaries are
successful in establishing or expanding self-employment
opportunities or engaging in wage employment. This is
primarily because beneficiaries tend to utilize the
livelihoods grant to cover regular and emergency household
expenditures, especially during challenging economic times
such as during the COVID-19 pandemic. The impact evaluation
results show that livelihood grants and services have a
positive impact on household business ownership but impacts
on earnings, consumption, and assets are insignificant.
These findings have important implications for the design of
future similar interventions.
Palabras clave
SOCIAL SAFETY NETS FOR WOMEN, LIVELIHOOD SKILLS, POVERTY AND FISCAL, FINANCIAL, AND ECONOMIC CRISIS, LIVELIHOOD INSURANCE, LIVESTOCK, LIVELIHOODS, CORONAVIRUS (COVID-19), NO POVERTY, SDG 1, GOOD HEALTH AND WELL-BEING, SDG 3, GENDER EQUALITY, SDG 5, DECENT WORK AND ECONOMIC GROWTH, SDG 8