Lessons from the Political Economy of Cash Transfer Programs: Does Cash Assistance Improve Women's Economic Empowerment?

Conditional cash transfer (CCT) programs have become widely used tools in social protection policies aimed at alleviating poverty in developing countries. The study aims to assess the effects of CCT programs on women’s economic empowerment by examining key indicators, such as income growth, household expenditure, and improvements in children’s health and education. Using data from 3,255 households in Malawi, collected through the World Bank's Living Standards Measurement Study, the study employs a Difference-in-Difference (DiD) approach to analyze the impact of cash transfers on various economic outcomes for women and their families. The study finds significant improvements in women’s economic empowerment. Women experienced growth in their own income (DiD estimate = 0.003) and their partners' income (DiD estimate = 0.017). Additionally, improvements were observed in children’s health (DiD estimate = 0.008) and schooling (DiD estimate = 0.016). Expenditures on major purchases and family-related items also increased (DiD estimates = 0.012 and 0.017, respectively). The findings suggest that CCTs contribute to women's economic empowerment, although their effectiveness depends on program design and socio-political contexts. The study advocates for gender-sensitive policy design and targeted investments in women’s empowerment, alongside complementary interventions in education, healthcare, and income generation.