The Effect of Cash Transfers for Refugee Children

Cash payments reduce the proportion of children not attending school and working

A recent study tests for the effects of cash payments from the Emergency Social Safety Net program across two groups of refugee children residing in Turkey, 1) those coming from families who received a cash payment, and 2) those from families who did not. The results used the CVME survey data to show that receiving a cash payment is associated with a positive effect on school enrollment and a negative effect on child labor among refugee children. Receiving a cash payment reduces the proportion of children not in school from 36.2 to 13.7 percent and reduces the proportion of children working from 14.0 to 1.6 percent. These effects are larger for older than younger children, and for children in lower-income households. Policies targeting the wellbeing of refugee children should consider that households benefiting from a cash payment are more likely to send children to school, because the payment addresses both the direct cost of schooling and the opportunity cost of the child studying and not working.             

Cash payments to refugees caused declines in poverty, inequality, and household size 

Another study using the CVME data of refugees residing in Turkey found that when the ESSN cash transfer payments were introduced, there was a sharp decline in poverty and inequality in the overall refugee population, and eligible households experienced an increase in the diversity and frequency of foods consumed. Policymakers should consider that refugee populations may alter their household structure and living arrangements in order to increase eligibility status for their children; in this case, household sizes decreased because parents responded to their initial eligibility status by sending children (via fostering) into environments where they would have more access to resources and schooling.

Additional resources

• CVME survey data: Learn more about refugees’ health, education, income, spending, debt, living conditions, and food security.

• Emergency Social Safety Net: Learn more about the largest cash transfer program for refugees in the world.

  Do you have a study we should share for a future Facty Friday? Send an email to drg.el@usaid.gov!