IPA collaborates with local partners to implement research in Honduras. In 2011, IPA and researchers partnered with PLAN International Honduras and Organización de Desarollo Empresarial Feminino Social to evaluate the impact of an ultra-poor graduation program. Recently, IPA has partnered with the World Bank, SEDUC, and Inter-American Development Bank to research solutions to youth development and education challenges.
More than one fifth of the world’s population lives on less than US$1.25 per day. While many credit and training programs have not been successful at raising income levels for these ultra-poor households, recent support for livelihoods programs has spurred interest in evaluating whether comprehensive “big push” interventions may allow for a sustainable transition to self-employment and a higher standard of living. To test this theory, researchers evaluated a globally implemented “Graduation” approach to measure its impact on the lives of the ultra-poor. They found that the approach had long-lasting economic and self-employment impacts and that the long-run benefits, measured in terms of household expenditures, outweighed their up-front costs. Honduras was the only country where long-run benefits did not outweigh their up-front costs.