IDEAS home Printed from https://ideas.repec.org/a/col/000425/016952.html
   My bibliography  Save this article

Cash Transfers in Latin America: Effects on Poverty and Redistribution

Author

Listed:
  • Verónica Amarante
  • Martín Brun

Abstract

We present comparative evidence for eight Latin American countries regarding the design and effects of cash transfers (CTs). On the basis of household survey data, we analyze their coverage, importance in household income, and effects on poverty reduction and income redistribution. We present a static microsimulation to analyze the potential impacts of alternative pro- gram designs, including perfect targeting and higher budgets. Our results illustrate wide variation in terms of design, coverage, and importance in household income. CTs account for a significant portion of household income in lower deciles. Nonetheless, their effects in terms of reducing the incidence, intensity, and severity of poverty are moderate at best, and although their progressivity is high, their redistributive impact is limited. These results are mainly explained by the meager resources involved. Even under perfect targeting, the budgets allocated would be insufficient to achieve full coverage among households in the lowest part of the income distribution.

Suggested Citation

  • Verónica Amarante & Martín Brun, 2018. "Cash Transfers in Latin America: Effects on Poverty and Redistribution," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2018), pages 1-31, November.
  • Handle: RePEc:col:000425:016952
    as

    Download full text from publisher

    File URL: http://economia.lacea.org/contents.htm
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Manley, James & Gitter, Seth & Slavchevska, Vanya, 2013. "How Effective are Cash Transfers at Improving Nutritional Status?," World Development, Elsevier, vol. 48(C), pages 133-155.
    2. Sarah Baird & Craig McIntosh & Berk Özler, 2011. "Cash or Condition? Evidence from a Cash Transfer Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1709-1753.
    3. César P. Bouillon & Luis Tejerina, 2006. "Do We Know What Works?: A Systematic Review of Impact Evaluations of Social Programs in Latin America and the Caribbean," IDB Publications (Working Papers) 80443, Inter-American Development Bank.
    4. repec:idb:brikps:78783 is not listed on IDEAS
    5. Mariano Bosch & Marco Manacorda, 2012. "Social Policies and Labor Market Outcomes in Latin America and the Caribbean: A Review of the Existing Evidence," CEP Occasional Papers 32, Centre for Economic Performance, LSE.
    6. Sergei Soares & Rafael Guerreiro Osório & Fábio Veras Soares & Marcelo Medeiros & Eduardo Zepeda, 2009. "Conditional cash transfers in Brazil, Chile and Mexico: impacts upon inequality," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 0(Special i), pages 207-224.
    7. Emmanuel Skoufias & Vincenzo Di Maro, 2008. "Conditional Cash Transfers, Adult Work Incentives, and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 44(7), pages 935-960.
    8. Marie Gaarder & Amanda Glassman & Jessica Todd, 2010. "Conditional cash transfers and health: unpacking the causal chain," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 2(1), pages 6-50.
    9. Alan de Brauw & John Hoddinott, 2008. "Is the Conditionality Necessary in Conditional Cash Transfer Programmes? Evidence from Mexico," One Pager 64, International Policy Centre for Inclusive Growth.
    10. John Maluccio, 2010. "The Impact of Conditional Cash Transfers on Consumption and Investment in Nicaragua," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 14-38.
    11. Cecchini, Simone & Madariaga, Aldo, 2011. "Programas de transferencias condicionadas: balance de la experiencia reciente en América Latina y el Caribe," Cuadernos de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 27854 edited by Cepal, September.
    12. Norbert Schady & Maria Caridad Araujo, 2008. "Cash Transfers, Conditions, and School enrollment in Ecuador," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 43-77, January.
    13. Juan Esteban Saavedra & Sandra Garcia, 2012. "Impacts of Conditional Cash Transfer Programs on Educational Outcomes in Developing Countries A Meta-analysis," Working Papers WR-921-1, RAND Corporation.
    14. María Alzúa & Guillermo Cruces & Laura Ripani, 2013. "Welfare programs and labor supply in developing countries: experimental evidence from Latin America," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1255-1284, October.
    15. Bouillon, César P. & Tejerina, Luis, 2006. "Do We Know What Works?: A Systematic Review of Impact Evaluations of Social Programs in Latin America and the Caribbean," IDB Publications (Working Papers) 2801, Inter-American Development Bank.
    16. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications - Books, The World Bank Group, number 2597, December.
    17. Armando Barrientos & David Hulme, 2008. "Social Protection for the Poor and Poorest in Developing Countries: Reflections on a Quiet Revolution," Global Development Institute Working Paper Series 3008, GDI, The University of Manchester.
    18. repec:idb:brikps:publication-detail,7101.html?id=66306 is not listed on IDEAS
    19. Stampini, Marco & Tornarolli, Leopoldo, 2012. "The Growth of Conditional Cash Transfers in Latin America and the Caribbean: Did They Go Too Far?," IZA Policy Papers 49, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cecchini, Simone & Villatoro S., Pablo & Mancero, Xavier, 2021. "The impact of non-contributory cash transfers on poverty in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    2. Maria Alessandra Antonelli & Valeria De Bonis, 2021. "Economic Poverty: Does the Break-Up of Families Matter?," Social Sciences, MDPI, vol. 10(6), pages 1-20, June.
    3. Andrés Dean & Fernanda Diab & Juan Olano & Agustín Reyes & Guillermo Sánchez-Laguardia & Juan Ignacio Urruty, 2023. "Empleo Garantizado por el Estado y Renta Básica Universal: estrategias para enfrentar el problema estructural del empleo precario," Documentos de Trabajo (working papers) 23-22, Instituto de Economía - IECON.
    4. Qilin Liu & Qianqian Li, 2023. "Impact of New Rural Pension Insurance on Farmers’ Agricultural Mechanization Service Inputs," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    5. Perova,Elizaveta & Johnson,Erik Caldwell & Mannava,Aneesh & Reynolds,Sarah Anne & Teman,Alana Hinda, 2021. "Public Work Programs and Gender-Based Violence : Evidence from Lao PDR," Policy Research Working Paper Series 9691, The World Bank.
    6. Ivone Perazzo & Analía Rivero & Andrea Vigorito, 2021. "¿Qué sabemos sobre los programas de transferencias no contributivas en Uruguay? Una síntesis de resultados de investigación disponibles sobre el PANES, AFAM-PE y TUS," Documentos de Trabajo (working papers) 21-33, Instituto de Economía - IECON.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Verónica Amarante & Martín Brun, 2018. "Cash Transfers in Latin America: Effects on Poverty and Redistribution," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2018), pages 1-31, November.
    2. Miguel Nino-Zarazua, 2011. "Mexico’s Progresa-Oportunidades and the emergence of Social Assistance in Latin America," Global Development Institute Working Paper Series 14211, GDI, The University of Manchester.
    3. María Alzúa & Guillermo Cruces & Laura Ripani, 2013. "Welfare programs and labor supply in developing countries: experimental evidence from Latin America," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1255-1284, October.
    4. Miguel Niño‐Zarazúa, 2019. "Welfare and Redistributive Effects of Social Assistance in the Global South," Population and Development Review, The Population Council, Inc., vol. 45(S1), pages 3-22, December.
    5. Ma, Zhao & Bauchet, Jonathan & Steele, Diana & Godoy, Ricardo & Radel, Claudia & Zanotti, Laura, 2017. "Comparison of Direct Transfers for Human Capital Development and Environmental Conservation," World Development, Elsevier, vol. 99(C), pages 498-517.
    6. Jacobus de Hoop & Furio C. Rosati, 2014. "Cash Transfers and Child Labor," The World Bank Research Observer, World Bank Group, vol. 29(2), pages 202-234.
    7. von Jacobi, Nadia, 2014. "Can the context mediate macro-policy outcomes? Contextual differences in the returns to Bolsa Familia in Brazil," WIDER Working Paper Series 049, World Institute for Development Economic Research (UNU-WIDER).
    8. Bosch, Mariano & Manacorda, Marco, 2012. "Social policies and labor market outcomes in Latin America and the Caribbean: a review of the existing evidence," LSE Research Online Documents on Economics 58003, London School of Economics and Political Science, LSE Library.
    9. Fiorella Benedetti & Pablo Ibarrarán & Patrick J. McEwan, 2016. "Do Education and Health Conditions Matter in a Large Cash Transfer? Evidence from a Honduran Experiment," Economic Development and Cultural Change, University of Chicago Press, vol. 64(4), pages 759-793.
    10. Margherita Calderone, 2017. "Are there different spillover effects from cash transfers to men and women? Impacts on investments in education in post-war Uganda," WIDER Working Paper Series 093, World Institute for Development Economic Research (UNU-WIDER).
    11. Luis García & Erika Collantes, 2017. "Effect of the Juntos social program on female labor supply in Peru," Documentos de Trabajo / Working Papers 2017-448, Departamento de Economía - Pontificia Universidad Católica del Perú.
    12. Bauchet, Jonathan & Undurraga, Eduardo A. & Reyes-García, Victoria & Behrman, Jere R. & Godoy, Ricardo A., 2018. "Conditional cash transfers for primary education: Which children are left out?," World Development, Elsevier, vol. 105(C), pages 1-12.
    13. Santiago Garganta & Leonardo Gasparini & Mariana Marchionni, 2017. "Cash transfers and female labor force participation: the case of AUH in Argentina," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-22, December.
    14. Chitolina, Lia & Foguel, Miguel Nathan & Menezes-Filho, Naercio Aquino, 2016. "The impact of the expansion of the bolsa familia program on the time allocation of youths and their parents," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 70(2), July.
    15. Ham, Andrés & Michelson, Hope C., 2018. "Does the form of delivering incentives in conditional cash transfers matter over a decade later?," Journal of Development Economics, Elsevier, vol. 134(C), pages 96-108.
    16. Baird, Sarah & McIntosh, Craig & Özler, Berk, 2019. "When the money runs out: Do cash transfers have sustained effects on human capital accumulation?," Journal of Development Economics, Elsevier, vol. 140(C), pages 169-185.
    17. Rafael Novella & Laura Ripani & Claudia Vazquez, 2021. "Conditional cash transfers, female bargaining power and parental labour supply," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 422-436, March.
    18. Nadia von Jacobi, 2014. "Can the Context Mediate Macro-Policy Outcomes?: Contextual Differences in the Returns to Bolsa Familia in Brazil," WIDER Working Paper Series wp-2014-049, World Institute for Development Economic Research (UNU-WIDER).
    19. Harold Alderman & Ruslan Yemtsov, 2014. "How Can Safety Nets Contribute to Economic Growth?," The World Bank Economic Review, World Bank Group, vol. 28(1), pages 1-20.
    20. Cecchini, Simone & Madariaga, Aldo, 2011. "Conditional cash transfer programmes: the recent experience in Latin America and the Caribbean," Cuadernos de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 27855 edited by Eclac, September.

    More about this item

    Keywords

    Cash transfers; Latin America; poverty; inequality;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000425:016952. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LACEA (email available below). General contact details of provider: https://edirc.repec.org/data/laceaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.