The Unintended Consequences of Social Transfer Programs: Effects on Conflict, Governance, and Social Cohesion

Abstract

While the role of social transfers in reducing poverty and encouraging welfare-enhancing behaviors is well-established, emerging evidence shows that they also significantly impact both political and social attitudes and behaviors. This article undertakes a systematic review of the quantitative evidence on these typically unintended impacts, highlighting a broad set of outcomes related to both citizen–citizen (horizontal) and state–citizen (vertical) relationships. We identify mixed findings. Although social transfers have been shown to enhance political engagement, institutional trust, and social cohesion, other studies suggest they may undermine these outcomes. We highlight key factors that may explain these varied findings, highlighting both characteristics of the recipients as well as features of the governance and the programs themselves.