GiveDirectly model 2
Target: Using publicly available data to determine extremely poor communities, field staff go to households to collect data on poverty and enroll recipients.
Audit. A set of independent checks determine recipient eligibility.
Transfer: An estimated $1,000 is transferred to households (around one year’s total household consumption), using electronic payment systems. Recipients receive an SMS alert to collect cash from a mobile money agent.
Monitor: The organization monitors receipt of funds and flags any issues.
Cash Transfer tools: GiveDirectly manages transfers end-to-end using electronic monitoring and payment technology.
In an effort to investigate the causality between poverty and psychological well-being, this randomized control trial focuses on a direct cash transfer intervention amongst low-income households in Western Kenya where the average recipient lives on just 65 cents per day.2 Cash transfers have been thoroughly and rigorously shown to reduce poverty and improve lives and have arguably the strongest existing evidence base among anti-poverty tools.2
Treatment group: Low-income households, as determine by GiveDirectly eligibility criteria, in Western Kenya receiving direct cash transfers in the amount of $404-1525 USD.
Spillover control group: Low-income households, as determine by GiveDirectly eligibility criteria, in Western Kenya not receiving the intervention and residing in villages where other households received the treatment
Pure control group: Low-income households, as determine by GiveDirectly eligibility criteria, in Western Kenya not receiving the intervention and not residing in villages where other households received the treatment.
Along with other financial outcome measure, an index of psychological wellbeing was assessed and included a CES-D depression questionnaire, cortisol levels, and measures of optimism, self-esteem, life satisfaction, worries, perceived stress, loneliness, trust, locus of control, and happiness.