Asset Accumulation and Savings Persistence

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In Simple Words

Think of a short-term public works program like a heavy rainstorm over a dry farm. If a farmer lets the water run off, the soil dries up as soon as the storm ends. But if the farmer channels the rainfall into a water storage tank or buys farming tools, the benefits of that single storm continue to support the farm for years after the rain stops.

People in Tunisia’s public works evaluation

Study comparison group
Comparison group
Public works program
More livestock, furniture and home ownership

Tunisia, five years after the program. Asset ownership was higher, although employment and earnings did not increase over the same period.

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Research question

Short-term public works programs frequently fail to generate lasting employment or wage gains after program completion. Policymakers require mechanisms that convert temporary cash inflows during active participation into enduring financial security for low-income households.

Participants

Review of 13 randomized evaluations covering thousands of low- and middle-income participants in Tunisia, Côte d'Ivoire, Sierra Leone, DRC, and Comoros.

Study Design

Systematic review of randomized controlled trials tracking employment, earnings, savings, and physical asset ownership over short-term to 5-year post-program periods.

Results

Participants increased savings or asset ownership in 9 out of 10 evaluations examining asset accumulation; in Tunisia, participants retained significantly higher home, livestock, and furniture ownership 5 years post-program despite a 5 percentage point drop in employment probability.

Takeaway

Pair temporary public works wage payouts with incentivized formal savings accounts to ensure short-term earnings are converted into durable household assets.

Source and citation

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Plain-English glossary

Original explanations, informed by the references below. Examples are illustrations, not data from the studies above. The research text stays unchanged.

Percentage points

The difference between two percentages.

ExampleA rise from 40% to 50% is 10 percentage points. Relative to the starting value, that is a 25% increase.

Office for National Statistics · Percentages ↗Read more about percentage points →

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