Emergency cash transfers for informal workers: Impact evidence from Mexico

We study the effects of a sizeable ($526 PPP) one-time-only emergency cash transfer targeted at self-employed, sub-employed, and informal sector workers during the COVID-19 pandemic. The transfers were processed on a first-come, first-served basis until program funds were depleted, creating a plausible source of exogenous variation in program participation. Combining this discontinuity with a purpose-built phone survey, we find substantial positive effects on measures of food security and psychological well-being three to four months after reception. The point estimates for summary measures of business health outcomes and support for lockdowns are positive but imprecisely estimated.(c) 2023 Elsevier B.V. All rights reserved.