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The Review of Economics and Statistics Vol. 104 No. 1 2022

The Impact of Emergency Cash Assistance in a Pandemic: Experimental Evidence from Colombia

Juliana Londoño-Vélez1; Pablo Querubín2

1 UCLA · 2 New York University

open access

Abstract

We study the impact of money on households during the COVID-19 pandemic. In March 2020, Colombia rolled out a new unconditional cash transfer (UCT) to 1 million households in poverty worth US$19 (PPP US$55.6) and paid every five to eight weeks. Using a randomized control trial and linked administrative and survey data, we find the UCT had positive (albeit modest) effects on measures of household well-being (e.g., financial health, food access). Moreover, the UCT boosted support for emergency assistance to households and firms during the crisis and promoted social cooperation. Finally, we explore the bottlenecks in expanding mobile money during a pandemic.

DOI
10.1162/rest_a_01043
Volume
104
Issue
1
Pages
157-165
Language
en
Sources
openalex crossref

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