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Does Conditionality Generate Heterogeneity and Regressivity in Program Impacts? The Progresa Experience

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  • Campo, Juan Carlos Chavez-Martin del

Abstract

We study both empirically and theoretically the consequences of introducing a conditional cash transfer scheme for the distribution of program impacts. Intuitively, if the conditioned-on good is normal, then better-off households tend to receive a larger positive impact. I formalize this insight by means of a simple model of child labor, applying the Nash-Bargaining approach as the solution concept. A series of tests for heterogeneity in program impacts are developed and applied to Progresa, an anti-poverty program in Mexico. It can be concluded that this program exhibits a lot of heterogeneity in treatment effects. Consistent with the model, and under the assumption of rank preservation, program impacts are distributionally regressive, although positive, within the treated population

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Bibliographic Info

Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 127042.

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Date of creation: 2006
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Handle: RePEc:ags:cudawp:127042

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Related research

Keywords: Heterogeneous Program Impacts; Regressivity; Progresa; Conditional Cash Transfers; Nonparametric Methods; Semiparametric Methods.; Research Methods/ Statistical Methods; H430; C140; C210;

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  1. Heckman, James J & Smith, Jeffrey, 1997. "Making the Most Out of Programme Evaluations and Social Experiments: Accounting for Heterogeneity in Programme Impacts," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 487-535, October.
  2. Charles F. Manski, 1997. "Monotone Treatment Response," Econometrica, Econometric Society, vol. 65(6), pages 1311-1334, November.
  3. James J. Heckman, 1977. "Dummy Endogenous Variables in a Simultaneous Equation System," NBER Working Papers 0177, National Bureau of Economic Research, Inc.
  4. Molinari, Francesca, 2005. "Missing Treatments," Working Papers 05-11, Cornell University, Center for Analytic Economics.
  5. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  6. Cesar Martinelli & Susan W. Parker, 2003. "Should Transfers To Poor Families Be Conditional On School Attendance? A Household Bargaining Perspective," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 523-544, 05.
  7. Donald W. K. Andrews, 2000. "Inconsistency of the Bootstrap when a Parameter Is on the Boundary of the Parameter Space," Econometrica, Econometric Society, vol. 68(2), pages 399-406, March.
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Cited by:
  1. 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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