Working Paper: NBER ID: w11048
Authors: James Levinsohn; Margaret McMillan
Abstract: This paper uses household-level data from Ethiopia to investigate the impact of food aid on the poor. We find that food aid in Ethiopia is "pro-poor." Our results indicate that (i) net buyers of wheat are poorer than net sellers of wheat, (ii) there are more buyers of wheat than sellers of wheat at all levels of income, (iii) the proportion of net sellers is increasing in living standards and (iv) net benefit ratios are higher for poorer households indicating that poorer households benefit proportionately more from a drop in the price of wheat. In light of this evidence, it appears that households at all levels of income benefit from food aid and that - somewhat surprisingly - the benefits go disproportionately to the poorest households.
Keywords: Food Aid; Household Welfare; Ethiopia
JEL Codes: F1; O1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| food aid (F35) | wheat prices (Q11) |
| wheat prices (Q11) | welfare for poorer households (I38) |
| net buyer status (F32) | income level (D31) |
| food aid (F35) | net buyer status (F32) |
| net seller status (G19) | living standards (I31) |
| net benefit ratios (G32) | household income (D19) |