Working paper abstract

#2013-063

Estimation of rates of return on social protection: Making the case for non-contributory social transfers in Cambodia

Andres Mideros Mora, Franziska Gassmann & Pierre Mohnen

This study estimates the rates of return (RoR) of non-contributory social transfer programmes in Cambodia using household data and going beyond standard cost efficiency analyses by developing a dynamic micro simulation. It shows that social protection promotes equitable economic growth by enhancing human development and fostering economic performance at the micro level. A positive RoR is achieved after 12 periods and can reach between 12 per cent and 15 per cent after 20 periods. This study shows that micro simulation models can be extended in order to analyse the economic returns on social protection.

Keywords: social protection, non-contributory social transfers, microsimulation, rate of return,

JEL classification: C15, H00, I38, O15