Poverty Graduation with Cash Transfers: A Randomized Evaluation

Vilas J. Gobin, Paulo Santos, and Russell Toth

ABSTRACT

We examine the impact of the Rural Entrepreneur Access Program (REAP), a poverty graduation program that combines multiple interventions with the aim of promoting en- trepreneurship among ultra-poor women. The program emphasizes cash transfers (rather than asset transfers) to ultra-poor women, in addition to business skills training, business mentoring and savings. Participation in each of three rounds of the program was randomly determined through a public lottery. In the short-to-medium-run we find that the program has a positive and significant impact on income, savings, asset accumulation, and food security that are similar to more traditional poverty graduation programs that rely on asset transfers.