I couldn’t find the specific details on Kenya, but here’s a meta-study of 19 papers looking into the consumption effects of cash transfer programs.
Well, do they waste the money on alcohol and cigarettes or not? They do not. When we examine 44 estimates of spending on alcohol and tobacco across 19 studies and 13 interventions (i.e., Oportunidades/PROGRESA is very well studied), we find that the vast majority of estimates (82%) are negative. More than a quarter are negative and significant, and only 2 are positive and significant. With both of the positive and significant estimates, estimates within the study are discordant (i.e., one positive and one negative).
I understand your general concern, but I also feel like you’re conflating “having a job” with “having a purpose”. These two ideas can overlap — some people really enjoy what they do for a living — but for most people, a job is just a means to an end. Most jobs are not fulfilling.
If we gave people money and told them to do whatever they wanted with it, sure, some people would spend their days getting wasted and playing video games (which is probably what they were doing anyway). But some people will use the money to go back to school, and others will spend their time volunteering or pursuing a creative outlet. All of these opportunities are purpose-driven and they wouldn’t be possible for most people if they were stuck flipping burgers (or stocking shelves, etc) for rent money.
