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Can Small Incentives Have Large Payoffs? Health Impacts of a Cash Transfer Program in Bolivia

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  • Pablo A. Celhay
  • Julia Johannsen
  • Sebastian Martinez
  • Cecilia Vidal

Abstract

We study the effects of a conditional cash transfer for health care utilization, equivalent to 1% of monthly household consumption, on child survival in Bolivia. Using census data and an instrument for program take-up, we show that the intervention increased the survival rates of birth cohorts exposed to the program by 3.8% to 14.7%. A pathways analysis shows higher rates of early antenatal care and skilled birth attendance for women and a higher number of growth monitoring checkups and immunization for children. The intervention is highly cost-effective, at $746 per disability-adjusted life year averted, making the program’s design a promising policy alternative.

Suggested Citation

  • Pablo A. Celhay & Julia Johannsen & Sebastian Martinez & Cecilia Vidal, 2021. "Can Small Incentives Have Large Payoffs? Health Impacts of a Cash Transfer Program in Bolivia," Economic Development and Cultural Change, University of Chicago Press, vol. 69(2), pages 591-621.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/703085
    DOI: 10.1086/703085
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