Social protection and social distancing during the pandemic: Mobile money transfers in Ghana

We randomized mobile money transfers to a sample of low-income Ghanaians during the COVID-19 pandemic. Treated households received eight transfers that sum to roughly one month’s income, while control households only received one transfer. The mere announcement of upcoming transfers has no effect. Once disbursed, transfers increase contemporaneous food expenditure by 8% and income by 20%, but do not affect psychological well-being. Over 40% of the transfers are spent on food. We find suggestive evidence that transfers increased social distancing. The positive effect on income does not persist to two years after the last transfer, and surprisingly, two-year effects on consumption and psychological well-being are negative. Together, we learn that pandemic-era cash transfers can support households economically without diminishing adherence to public health protocols, though with null or negative long-term effects.