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Conditional Cash Transfers: Do They Result in More Patient Choices and Increased Educational Aspirations?

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  • Diana Contreras Suarez
  • Lisa Cameron

Abstract

Conditional cash transfers (CCTs) aim to increase human capital in poor families. They do this directly through conditions but may also influence household decision-making in other ways. Using a regression discontinuity design, we test whether a large CCT program affects discounting choices and aspirations for children’s education. A greater willingness to defer consumption and desire to invest in education may result from habits formed during the program, through information received, or by the relaxation of the budget constraint. However, we find no evidence of such impacts, which limits the long-term impacts of such programs if the transfers were to cease.

Suggested Citation

  • Diana Contreras Suarez & Lisa Cameron, 2020. "Conditional Cash Transfers: Do They Result in More Patient Choices and Increased Educational Aspirations?," Economic Development and Cultural Change, University of Chicago Press, vol. 68(3), pages 729-761.
  • Handle: RePEc:ucp:ecdecc:doi:10.1086/701829
    DOI: 10.1086/701829
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    Cited by:

    1. Fruttero,Anna & Muller,Noel & Calvo-Gonzalez,Oscar, 2021. "The Power and Roots of Aspirations : A Survey of the Empirical Evidence," Policy Research Working Paper Series 9729, The World Bank.
    2. Tabe-Ojong, Martin Paul Jr. & Nshakira-Rukundo, Emmanuel, 2021. "Religiosity and parental educational aspirations for children in Kenya," World Development Perspectives, Elsevier, vol. 23(C).
    3. Hotak, Nematullah & Kaneko, Shinji, 2022. "Fiscal illusion of the stated preferences of government officials regarding interministerial policy packages: A case study on child labor in Afghanistan," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 285-298.

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