The Impact of Conditional Cash Transfers and Public Works Programs on Household Welfare in Rural Tanzania

Abstract

Both Public Works (PWs) and Conditional Cash Transfers (CCTs) programs have been implemented to support poor households in enhancing food security, protecting physical assets, and boosting resilience against shocks. However, ownership of valuable assets like improved housing, durables and livestock remains low among rural households in Tanzania. Evidence shows; that households without assets experience a decline in welfare and are at risk of falling into lower economic status. This study aims to assess the impact of integrated CCTs and PWs on asset holdings among households. The asset index was calculated using Principal Component Analysis (PCA) on cross-sectional data collected from 357 households (both treated and control) to determine household socioeconomic status and the Propensity Score Matching (PSM) technique was employed for impact evaluation. The results indicated that integrated CCTs and PWs contributed to improve asset accumulation by households. About 52% beneficiaries lives under improved iron roofed houses, owning 2 more goats and 3 more chicken compared to non-beneficiaries. Additionally, spending habits economics activities played a significant role in asset accumulation. The policy implications are to consider other cash transfer programs in other areas that have the potential to reduce poverty by providing direct financial assistance to vulnerable populations, leading to improved well-being and economic stability.