A systematic review and meta-analysis of the impact of cash transfers on subjective well-being and mental health in low- and middle-income countries

In a systematic review and meta-analysis of 45 studies, covering a sample of 116,999 individuals across 22 countries, McGuire et al. find that cash transfers improve the subjective well-being and mental health of recipients in low- and middle-income countries. Cash transfers (CTs) are increasingly recognized as a scalable intervention to alleviate financial hardship. A large body of evidence evaluates the impact of CTs on subjective well-being (SWB) and mental health (MH) in low- and middle-income countries. We undertook a systematic review, quality appraisal and meta-analysis of 45 studies examining the impact of CTs on self-reported SWB and MH outcomes, covering a sample of 116,999 individuals. After an average follow-up time of two years, we find that CTs have a small but statistically significant positive effect on both SWB (Cohen's d = 0.13, 95% confidence interval (CI) 0.09, 0.18) and MH (d = 0.07, 95% CI 0.05, 0.09) among recipients. CT value, both relative to previous income and in absolute terms, is a strong predictor of the effect size. Based on this review and the large body of existing research demonstrating a positive impact of CTs on other outcomes (for example, health and income), there is evidence to suggest that CTs improve lives. To enable comparisons of the relative efficacy of CTs to improve MH and SWB, future research should meta-analyse the effects of alternative interventions in similar contexts.

Automated summary

In a systematic review and meta-analysis of 45 studies, it was found that cash transfers have a statistically significant positive effect on subjective well-being and mental health of recipients in low- and middle-income countries. The impact is small but noticeable even after an average follow-up time of two years.