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Cash or Condition? Evidence from a Cash Transfer Experiment

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  • Sarah Baird
  • Craig McIntosh
  • Berk �zler

Abstract

This article assesses the role of conditionality in cash transfer programs using a unique experiment targeted at adolescent girls in Malawi. The program featured two distinct interventions: unconditional transfers (UCT arm) and transfers conditional on school attendance (CCT arm). Although there was a modest decline in the dropout rate in the UCT arm in comparison with the control group, it was only 43% as large as the impact in the CCT arm at the end of the 2-year program. The CCT arm also outperformed the UCT arm in tests of English reading comprehension. However, teenage pregnancy and marriage rates were substantially lower in the UCT than the CCT arm, entirely due to the impact of UCTs on these outcomes among girls who dropped out of school. Copyright 2011, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal The Quarterly Journal of Economics.

Volume (Year): 126 (2011)
Issue (Month): 4 ()
Pages: 1709-1753

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Handle: RePEc:oup:qjecon:v:126:y:2011:i:4:p:1709-1753

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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. CCTs usually increase schooling but few studies have found gains in test scores – what’s behind this disconnect?
    by Jed Friedman in Development Impact on 2012-04-11 13:28:51
  2. Health effects of non-health programs
    by Berk Ozler in Development Impact on 2012-07-12 03:29:03
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