One problem with this kind of study is that it ignores the price effects of transfers. Cash transfers essentially reduce the cost of obtaining services, and thus should lead to higher demand (for example, for children’s education) or usage of social services (for example, health-care centres). Therefore, the net effect of cash transfers should depend on the relative size of the price and income effects. More importantly, such findings of adverse incentive effects (or negative income effects) on labour supply imply that the poor are poor either because they are “lazy” (in other words, they prefer more leisure), or because their expectations are “low” (in other words, they work for a low minimum target income).