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In this Image A group of people in Honduras hold tablets that were delivered as part of an IPA study. © 2022 Yadiraah Iparraguirre / IPA

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Research Findings

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Graduating the Ultra Poor in Honduras

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More than one fifth of the world’s population lives on less than US$1.25 per day. While many credit and training programs have not been successful at raising income levels for these ultra-poor households, recent support for livelihoods programs has spurred interest in evaluating whether comprehensive “big push” interventions may allow for a sustainable transition to self-employment and a higher standard of living. To test this theory, researchers evaluated a globally implemented “Graduation” approach to measure its impact on the lives of the ultra-poor. They found that the approach had long-lasting economic and self-employment impacts and that the long-run benefits, measured in terms of household expenditures, outweighed their up-front costs. Honduras was the only country where long-run benefits did not outweigh their up-front costs.

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