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Why do Beneficiaries Leave the Safety Net in Mexico? A Study of the Effects of Conditionality on Dropouts

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  • Álvarez, Carola
  • Devoto, Florencia
  • Winters, Paul

Abstract

Summary This paper analyzes the characteristics of beneficiaries who drop out of the Mexican conditional cash transfer program Oportunidades to determine if dropping out of the program is a result of self-targeting by the non-poor or the exclusion of the target poor population. Using Oportunidades' administrative data and a discrete duration model, the analysis indicates that wealthier beneficiaries have greater odds of dropping out, suggesting that conditionality acts as a screening device. The results also indicate that administrative factors and the provider of health services to beneficiaries also have an important influence on whether beneficiaries remain in or leave the program.

Suggested Citation

  • Álvarez, Carola & Devoto, Florencia & Winters, Paul, 2008. "Why do Beneficiaries Leave the Safety Net in Mexico? A Study of the Effects of Conditionality on Dropouts," World Development, Elsevier, vol. 36(4), pages 641-658, April.
    • Handle: RePEc:eee:wdevel:v:36:y:2008:i:4:p:641-658
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    8. Schady, Norbert & Araujo, Maria Caridad, 2006. "Cash transfers, conditions, school enrollment, and child work : evidence from a randomized experiment in Ecuador," Policy Research Working Paper Series 3930, The World Bank.
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    Cited by:

    1. Pierre Levasseur, 2017. "Why conditional cash transfers programs fail to target the poor ? The case of urban Mexico," Post-Print hal-02273901, HAL.
    2. Pierre Levasseur, 2019. "Can social programs break the vicious cycle between poverty and obesity?," Post-Print hal-02450319, HAL.
    3. Raymundo M. Campos†Vazquez & Alma S. Santillan, 2018. "Supply of schooling and dropout rates: Evidence from the Oportunidades programme in Mexico," Development Policy Review, Overseas Development Institute, vol. 36(4), pages 445-464, July.
    4. Paul Conal Winters & Vera Chiodi, 2011. "Human Capital Investment And Long‐Term Poverty Reduction In Rural Mexico," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(4), pages 515-538, May.
    5. 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.
    6. Levasseur, Pierre, 2021. "Why do conditional cash transfer programmes fail to target the poor? The case of urban areas in Mexico," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    7. Heinrich, Carolyn J. & Brill, Robert, 2015. "Stopped in the Name of the Law: Administrative Burden and its Implications for Cash Transfer Program Effectiveness," World Development, Elsevier, vol. 72(C), pages 277-295.
    8. Raymundo M. Campos Vázquez & Carlos Chiapa & Eduardo Alma S. Santillán, 2012. "Análisis de trayectorias de los hogares beneficiarios del programa Oportunidades," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 27(2), pages 295-346.
    9. Rinehart, Chloe S. & McGuire, James W., 2017. "Obstacles to Takeup: Ecuador's Conditional Cash Transfer Program, The Bono de Desarrollo Humano," World Development, Elsevier, vol. 97(C), pages 165-177.
    10. Cecilia Rossel & Denise Courtoisie & Magdalena Marsiglia, 2019. "How could conditional cash transfer programme conditionalities reinforce vulnerability? Non‐compliers and policy implementation gaps in Uruguay's Family Allowances," Development Policy Review, Overseas Development Institute, vol. 37(1), pages 3-18, January.
    11. Juan M. Villa & Miguel Niño-Zarazúa, 2019. "Poverty dynamics and graduation from conditional cash transfers: a transition model for Mexico’s Progresa-Oportunidades-Prospera program," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(2), pages 219-251, June.
    12. González-Flores, Mario & Heracleous, Maria & Winters, Paul, 2012. "Leaving the Safety Net: An Analysis of Dropouts in an Urban Conditional Cash Transfer Program," World Development, Elsevier, vol. 40(12), pages 2505-2521.
    13. Pfutze, Tobias, 2019. "Should program graduation be better targeted? The other schooling outcomes of Mexico’s Oportunidades," World Development, Elsevier, vol. 123(C), pages 1-1.
    14. 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.
    15. Rodríguez, Luis C. & Pascual, Unai & Muradian, Roldan & Pazmino, Nathalie & Whitten, Stuart, 2011. "Towards a unified scheme for environmental and social protection: Learning from PES and CCT experiences in developing countries," Ecological Economics, Elsevier, vol. 70(11), pages 2163-2174, September.
    16. Juan M Villa & Armando Barrientos, 2016. "Exit as entry in antipoverty programmes," Global Development Institute Working Paper Series 022016, GDI, The University of Manchester.
    17. Carolyn J. Heinrich & Sayil Camacho & Sarah Clark Henderson & Mónica Hernández & Ela Joshi, 2022. "Consequences of Administrative Burden for Social Safety Nets that Support the Healthy Development of Children," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(1), pages 11-44, January.
    18. Balmori de la Miyar, Jose Roberto, 2018. "The effect of conditional cash transfers on reporting violence against women to the police in Mexico," International Review of Law and Economics, Elsevier, vol. 56(C), pages 73-91.
    19. Levasseur, Pierre, 2019. "Can social programs break the vicious cycle between poverty and obesity? Evidence from urban Mexico," World Development, Elsevier, vol. 113(C), pages 143-156.

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