Cash Transfers, Risk Management and Asset Accumulation: Policy Evaluation for Rural Poverty Reduction in Nicaragua

Nicaragua map

A lack of minimum endowment of assets can cause households to be stuck in long-term poverty traps, and negative shocks can cause households to fall below the minimum asset threshold necessary to pull themselves out of poverty. Conditional cash transfers are one mechanism to help increase asset endowments, as well as investment in education, health and nutrition.

This project aimed to look at the long-term impact of a cash transfer pilot program, and whether it increases the asset base and/or facilitates income diversification. It will also look at the changes in households’ return on productive activities following their participation in the program.