Business and employment around the world are being severely impacted by COVID-19, as 345 million full-time equivalent (FTE) jobs have been lost worldwide in the third quarter of 2020 alone and 45-53 percent of MSMEs worldwide anticipate falling into debt as a result of COVID-19. IPA conducted phone interviews with 1,357 respondents in mid-May 2020, 71 percent of whom were working before the pandemic hit. This brief summarizes results from the survey on business and employment and makes recommendations for job creation and economic recovery.
This presentation summarizes findings related to the impact of COVID-19 on food security and hunger, based on Round 1 of the RECOVR Survey. Countries surveyed: Burkina Faso, Côte d’Ivoire, Ghana, Rwanda, Sierra Leone, Zambia, Colombia, Mexico, and the Philippines.
Randomized controlled trials in lower-income countries have demonstrated ways to increase learning, in speciﬁc settings. This study uses a large-scale, nationwide RCT in Ghana to show the external validity of four school-based interventions inspired by other RCTs. Even though the government implemented the programs within existing systems, student learning increased across all four models, more so for female than male students, and many gains persisted one year after the program ended. Three of the four interventions had a similar cost eﬀectiveness. The intervention that directly targeted classroom teachers increased the likelihood that teachers were engaged with students.
The income elasticity of labor supply is a central parameter of many economic models. We test how labor supply and effort in northern Ghana respond to exogenous changes in income and wages using a randomized evaluation of a multi-faceted grant program combined with a bag-making operation. We find that recipients of the grant program increase, rather than reduce, their supply of labor. We argue that simple models with either labor or capital market frictions are not sufficient to explain the results, whereas a model that allows for a positive psychological produc- tivity effect from higher income does fit our findings.
The burden of food insecurity is large in Sub-Saharan Africa, yet the evidence-base on the relation between household food insecurity and early child development is extremely limited. Furthermore, available research mostly relies on cross-sectional data, limiting the quality of existing evidence. We use longitudinal data on preschool-aged children and their households in Ghana to investigate how being in a food insecure household was associated with early child development outcomes across three years. Household food insecurity was measured over three years using the Household Hunger Score. Households were first classified as “ever food insecure” if they were food insecure at any round. We also assessed persistence of household food insecurity by classifying households into three categories: (i) never food insecure; (ii) transitory food insecurity, if the household was food insecure only in one wave; and (iii) persistent food insecurity, if the household was food insecure in two or all waves. Child development was assessed across literacy, numeracy, social-emotional, short-term memory, and self-regulation domains. Controlling for baseline values of each respective outcome and child and household characteristics, children from ever food insecure households had lower literacy, numeracy and short-term memory. When we distinguished between transitory and persistent food insecurity, transitory spells of food insecurity predicted decreased numeracy (β = -0.176, 95% CI: -0.317; -0.035), short-term memory (β = -0.237, 95% CI: -0.382; -0.092), and self-regulation (β = -0.154, 95% CI: -0.326; 0.017) compared with children from never food insecure households. By contrast, children residing in persistently food insecure households had lower literacy scores (β = -0.243, 95% CI: -0.496; 0.009). No gender differences were detected. Results were broadly robust to the inclusion of additional controls. This novel evidence from a Sub-Saharan African country highlights the need for multi-sectoral approaches including social protection and nutrition to support early child development
Participatory development is designed to mitigate problems of political bias in pre-existing local government but also interacts with it in complex ways. Using a five-year randomized controlled study in 97 clusters of villages (194 villages) in Ghana, we analyze the effects of a major participatory development program on participation in, leadership of and investment by pre-existing political institutions, and on households’ overall socioeconomic well-being. Applying theoretical insights on political participation and redistributive politics, we consider the possibility of both cross-institutional mobilization and displacement, and heterogeneous effects by partisanship. We find the government and its political supporters acted with high expectations for the participatory approach: treatment led to increased participation in local governance and reallocation of resources. But the results did not meet expectations, resulting in a worsening of socioeconomic wellbeing in treatment versus control villages for government supporters. This demonstrates international aid’s complex distributional consequences.