The Effects of Integrated Conditional Cash Transfers and Public Works Programs on Household Income Generation in Rural Tanzania

Abstract

Conditional cash transfers (CCTs) and public works (PWs) programs are implemented to improve the welfare of extremely poor households in rural Tanzania. However, there is limited information on how integrated programs impact household income generation. Using the propensity score matching method, data from both treatment and control groups were analyzed, focusing on major income-generating activities in rural areas such as crop farming, livestock keeping, non-farm businesses, and casual labor. The findings reveal that the programs have not significantly impacted income- generating activities among poor households, indicating persistent difficulties in escaping the poverty cycle. Despite this, the programs have stimulated non- farm businesses, which are typically categorized as petty businesses with low returns. Encouraging outcomes were observed in some households that utilized their cash to purchase farm inputs and livestock. Implying that policymakers and program founders should consider adding productive conditions such as promoting crop farming, livestock keeping, and group savings.