How Cash Transfers Boost Work and Economic Security

There has long been a minority view that providing people with cash is an effective way of combating poverty and economic insecurity while promoting livelihoods and work. The mainstream view has been that giving people money, without conditions or obligations, promotes idleness and dependency, while being unnecessarily costly. Better, they contend, would be to allocate the available money to schemes that create jobs and/or human capital and that produce infrastructure. This paper reviews recent evidence on various types of scheme and on several pilot cash transfer schemes, assessing them by reference to principles of social justice.