Over the past decades child stunting in Ethiopia has persisted at alarming rates. While the country experienced several droughts during this period, it also received enormous amounts of food aid, leading some to question the effectiveness of food aid in reducing child malnutrition. Using nationally representative household surveys from 1995-96 and controlling for program placement, Yamano, Alderman, and Christiaensen find that children between 6 and 24 months experienced about 0.9 cm less growth over a six-month period in communities where half the crop area was damaged compared with those without crop damage. Food aid was also found to have a substantial effect on the growth of children in this age group. And on average, the total amount of food aid appeared to be sufficient to protect children against plot damage, an encouraging sign that food aid can act as an effective insurance mechanism, though its cost-effectiveness needs further investigation.

Over the past decades child stunting in Ethiopia has persisted at alarming rates. While the country experienced several droughts during this period, it also received enormous amounts of food aid, leading some to question the effectiveness of food aid in reducing child malnutrition. Using nationally representative household surveys from 1995-96 and controlling for program placement, Yamano, Alderman, and Christiaensen find that children between 6 and 24 months experienced about 0.9 cm less growth over a six-month period in communities where half the crop area was damaged compared with those without crop damage. Food aid was also found to have a substantial effect on the growth of children in this age group. And on average, the total amount of food aid appeared to be sufficient to protect children against plot damage, an encouraging sign that food aid can act as an effective insurance mechanism, though its cost-effectiveness needs further investigation.This paper - a product of Public Services, Development Research Group - is part of a larger effort in the group to understand the consequences of economic shocks.

This dissertation consists of two separate essays. The first essay examines if the allocation of emergency food aid during the 2002/3 Ethiopian drought adheres to household rankings based on their history of consumption poverty as well as their experiences with shocks and food insecurity. We found that the allocation of free food aid benefits favored consumption-poor households with older heads. In contrast, the public works program did not favor consumption-poor households because of its work requirement. We also found the allocation of benefits in both programs to be marred by inclusion and exclusion errors. Non-deserving households that received free food aid were more likely to be headed by elderly women while those who wrongly received public works benefits were more likely to be younger and had better connections. Aid deserving households with older and/or sickly heads enjoyed lower chance of being excluded from either program. ☐ The second essay examines the effect of emergency food aid interventions during the 2002/3 Ethiopian drought on household wellbeing. We use the exogenous variation that the selection criteria provide to estimate the effect of program participation using fuzzy regression discontinuity. Results from the first stage of the RD design show that households that the criteria-based ranking deemed eligible to receive benefits had significantly higher chance of actually receiving them than those it almost deemed eligible. Despite the allocation of benefits being progressive, results from the second stage of the RD estimation indicate that neither program was effective at preventing beneficiaries from depleting assets or growing their livestock units. However, participation in the free food aid program had a positive and significant effect on real per capita food consumption. But, this estimate loses significance when households who also received public works benefits are excluded from the analysis, suggesting that the effect on consumption may be short lived. In contrast, participation in public works employment had a significant but negative effect on the rate of growth of non-food consumption. While participation in either program had no effect on household assessments of program fairness post-intervention, recipients of either benefit were more likely to view the government or its officials favorably than their non-recipient counterparts. We explain this in terms of the relief and optimism associated with securing help during a crisis situation.

We identify the impact of emergency food aid programs after the 2002 drought in rural Ethiopia on future welfare. Based on a difference-in-differences matching estimator, participation in food-for-work increases growth in total consumption and food consumption eighteen months after the drought. Separately, receiving free food raises growth in food consumption, but, surprisingly, negatively impacts food security. Food-for-work benefited households in the middle and upper tail of the consumption distribution, while the better-targeted free food program benefited the poorest. Evidence suggests these impacts demonstrate accumulated and persistent effects of food aid received in the first twelve months after the drought.