The Impact of the Disability Allowance on Financial Well-Being in the Maldives: Quasi-experimental Study

Abstract

There are few impact evaluations of social assistance programmes amongst people with disabilities, despite the increasing popularity of disability-targeted programmes. The Disability Allowance in the Maldives is a non-contributory, non-means-tested and unconditional cash transfer of MVR 2000 (US$130) per month. This study explores the impact of the Disability Allowance on financial well-being using a quasi-experimental study design with difference-in-difference analysis conducted between 2017 and 2019. Overall, this study found a modest impact of the Disability Allowance, mainly in food security. Receipt of the Disability Allowance was attributable to a decrease in the use of negative coping mechanisms in response to food insecurity and an increase in the food proportion of household consumption expenditures. There was a non-significant trend towards reduced poverty headcount and gap, and the likelihood of moderate/severe food insecurity. These findings carry implications for the design of social protection in the Maldives and globally, indicating possible improvements in programme design (e.g., increased amount) and for complementary interventions (e.g., improving access to disability-inclusive livelihood development programmes) to maximise impact.