Scandinavian Working Papers in Economics

CLTS Working Papers,
Norwegian University of Life Sciences, Centre for Land Tenure Studies

No 8/14: How Does Ethiopia’s Productive Safety Net Program Affect Livestock Accumulation and Children’s Education?

Bethelhem Legesse Debela () and Stein Holden ()
Additional contact information
Bethelhem Legesse Debela: Centre for Land Tenure Studies, Norwegian University of Life Sciences, Postal: Centre for Land Tenure Studies, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 Aas, Norway
Stein Holden: Centre for Land Tenure Studies, Norwegian University of Life Sciences, Postal: Centre for Land Tenure Studies, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 Aas, Norway

Abstract: We use panel data from Northern Ethiopia to investigate the welfare impact of Ethiopia’s Productive Safety Net Program. We assess whether the program raised livestock asset levels and children’s education among participant households. Using treatment effects models, we find that participants in the public work component invested more in livestock and children’s education than non-participant households after controlling for selection into the program. Participation in the program helps to protect beneficiaries from sacrificing their children’s education in response to shocks. Our conclusion remains the same when we control for the extent of down sale of livestock to avoid graduation from the program.

Keywords: Social protection; safety net; asset accumulation; education; Ethiopia; Africa

JEL-codes: I32; I38

47 pages, November 19, 2014

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