How effective are cash transfer programs in mitigating income instability ? evidence from the AUH in Argentina
- Authors
- Publication Date
- Apr 01, 2024
- Source
- HAL-Descartes
- Keywords
- Language
- English
- License
- Unknown
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Abstract
Income instability is one crucial determinant of household vulnerability to falling back into poverty in developed and developing countries. This paper examines the effectiveness of a nationally implemented cash transfer program as a buffer against income instability among vulnerable households in Argentina. Using nationally representative household surveys from 2004 to 2015, it compares the income stability of eligible and non-eligible households to the Universal Child Allowance (AUH) program by measuring the coefficient of variation of incomeand transitions into poverty over one and a half years. The findings reveal that the AUH significantly reduces the time spent in poverty by 16% compared to a scenario without the program. Additionally, the program demonstrates a capacity to smooth income fluctuations among eligible households, with an average reduction of 10%. Thiseffect is more pronounced when households experience a drop in income during the observed period. However, the program’s impact diminishes in households with lower resilience to economic shocks, such as single mothers or those with dependent grandparents
