How labeling cash transfers increased the likelihood of spending it on intended goods by 38%
Abstract
In order for unconditional money transfers to be effective, governments have to ensure these benefits are used for their allocated purpose. In this study, researchers investigated whether labeling the Winter Fuel Payment increased the likelihood that recipients would spend it on household fuel compared to a neutral label. Data from The Living Costs and Food Survey from years before and after implementation of the Winter Fuel Payment was used to test the labeling effect. They found that labeling the cash transfer as “Winter Fuel” increased the likelihood it was spent on household fuel by 38%.
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