Association for Public Policy Analysis & Management

Social protection programs are not introduced in a vacuum and it is important to understand the effects on existing informal networks of support. If a social cash transfer replaces unsystematic support from family, friends and community members it can affect other aspects of participants’ well-being as well as overturning part of the program’s impact. However, if the transfer money helps to remove barriers to social participation it can attract additional support by participants engaging in reciprocal support systems. These phenomena are respectively called crowing-out and crowding-in of social support. We use data from a longitudinal, quasi-experimental, mixed-method impact evaluation of Ghana’s Livelihood Empowerment Against Poverty (LEAP) 1000 program, a social cash transfer program for pregnant women or mothers with a child below age one living in poverty, to estimate the impact of the program on (informal) social support. Using a difference-in-differences approach we find that the LEAP 1000 increases overall social support. This result holds even when it is separated by function distinguishing instrumental and emotional support. An ANCOVA model controlling for baseline values of social support shows that social capital in the community and being a member in a local group contributes to the positive change in social support. These findings suggest that part of the change in social support comes from changes in relationships outside the household. The results of the qualitative interviews confirm these findings with increased opportunities for support. LEAP 1000 participants gave examples of increased access to financial markets, such as borrowing money or contributing to local savings schemes, and strengthening of social participation through local groups and gatherings.
In short, the LEAP 1000 crowds-in additional social support within and outside the household rather than crowding-out existing sources of support. The program reduces financial barriers of participation in social groups and enables participants to engage in an exchange of mutual support.