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Heterogeneous Impacts of Conditional Cash Transfers: Evidence from Nicaragua

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  • Ana C. Dammert

Abstract

In the last decade, the most popular policy tool used to increase human capital in developing countries has been the conditional cash transfer program. A large literature has shown significant mean impacts on schooling, health, and child labor. This paper examines heterogeneous effects using random-assignment data from the Red de Proteccion Social in rural Nicaragua. Using interactions between the targeting criteria and the treatment indicator, estimates suggest that children located in more impoverished localities experienced a larger impact of the program on schooling in 2001, but this finding is reversed in 2002. Estimated quantile treatment effects indicate that there is considerable heterogeneity in the impacts of the program on the distribution of food expenditures, as well as total expenditures. In particular, households at the lower end of the expenditure distribution experienced a smaller increase in expenditures. This study also presents evidence of the rank invariance assumption to help clarify the interpretation of the quantile treatment effect in the development literature context. (c) 2009 by The University of Chicago. All rights reserved..

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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 58 (2009)
Issue (Month): 1 (October)
Pages: 53-83

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Handle: RePEc:ucp:ecdecc:v:58:y:2009:i:1:p:53-83

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  1. Emmanuel Skoufias & Susan Wendy Parker, 2001. "Conditional Cash Transfers and Their Impact on Child Work and Schooling: Evidence from the PROGRESA Program in Mexico," Journal of LACEA Economia, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
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  9. Maluccio, John A. & Flores, Rafael, 2004. "Impact evaluation of a conditional cash transfer program," FCND briefs 184, International Food Policy Research Institute (IFPRI).
  10. T. Paul Schultz, 2001. "School Subsidies for the Poor: Evaluating the Mexican Progresa Poverty Program," Working Papers 834, Economic Growth Center, Yale University.
  11. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2002. "Is the Threat of Reemployment Services More Effective than the Services Themselves? Experimental Evidence from the UI System," NBER Working Papers 8825, National Bureau of Economic Research, Inc.
  12. Behrman, Jere R & Sengupta, Piyali & Todd, Petra, 2005. "Progressing through PROGRESA: An Impact Assessment of a School Subsidy Experiment in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 237-75, October.
  13. Djebbari, Habiba & Smith, Jeffrey A., 2008. "Heterogeneous Impacts in PROGRESA," IZA Discussion Papers 3362, Institute for the Study of Labor (IZA).
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Cited by:
  1. Mauricio Moura & Caio Piza & Marcos Poplawski-Ribeiro, 2011. "The Distributive Effects of Land Title on Labor Supply: Evidence from Brazil," IMF Working Papers 11/131, International Monetary Fund.
  2. Sosa-Rubí, Sandra G. & Galárraga, Omar & Harris, Jeffrey E., 2009. "Heterogeneous impact of the "Seguro Popular" program on the utilization of obstetrical services in Mexico, 2001-2006: A multinomial probit model with a discrete endogenous variable," Journal of Health Economics, Elsevier, vol. 28(1), pages 20-34, January.
  3. Del Carpio, Ximena V. & Loayza, Norman V., 2012. "The impact of wealth on the amount and quality of child labor," Policy Research Working Paper Series 5959, The World Bank.
  4. Djebbari, Habiba & Smith, Jeffrey, 2008. "Heterogeneous impacts in PROGRESA," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 64-80, July.

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