Abstract

The study analyzed the impact of the Productive Safety Net Program (PSNP) on Household Asset Building (HAB) in drought-prone areas of Southern Ethiopia. Cross-sectional survey data were collected from 180 randomly sampled households, including both PSNP beneficiaries and non-beneficiaries. The analysis included both inferential and descriptive methods, utilizing a Propensity Score Matching (PSM) technique to estimate the inferential results. The study's findings indicate that the PSNP has positively influenced the asset holdings and consumption patterns of beneficiary households compared to non-beneficiary households. However, the impact varied based on the type of intervention the beneficiaries accessed. Those who participated in the HAB program were more likely to improve their asset status, reduce asset depletion, and ensure consistent consumption throughout the year. Challenges identified in the study include delays in resource transfer and limited coverage of households, which hindered the program's effectiveness. The study concludes that timely resource transfers and expanded household coverage are essential for scaling up the program's impacts in the future.

Key words: Household asset-building, safety-net program, Propensity Score Matching (PSM), droughts.