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Why do the poor leave the safety net in Mexico? A study of the effects of conditionality on dropouts

Author

Listed:
  • Carola Álvarez

    (Inter-American Development Bank)

  • Florencia Devoto

    (Inter-American Development Bank)

  • Paul Winters

    (Department of Economics, American University)

Abstract

This paper analyzes the characteristics of beneficiaries that drop out of the Mexican conditional cash transfer program Oportunidades to determine if dropping out of the program is a result of selftargeting by the non-poor, the exclusion of the target poor population or a combination of both. The analysis, which uses a duration model, indicates that it is the wealthier beneficiaries that have greater odds of dropping out suggesting that conditionality acts as a screening device. Results also indicate that administrative factors and the particular provider of health services to beneficiaries have an important influence on dropouts.

Suggested Citation

  • Carola Álvarez & Florencia Devoto & Paul Winters, 2006. "Why do the poor leave the safety net in Mexico? A study of the effects of conditionality on dropouts," Working Papers 2006-10, American University, Department of Economics.
    • Handle: RePEc:amu:wpaper:1006
    DOI: 10.17606/33ev-pe13
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    References listed on IDEAS

    as
    1. Skoufias, Emmanuel & Quisumbing, Agnes R., 2003. "Consumption insurance and vulnerability to poverty," FCND briefs 155, International Food Policy Research Institute (IFPRI).
    2. Emanuela Galasso & Martin Ravallion, 2004. "Social Protection in a Crisis: Argentina's Plan Jefes y Jefas," The World Bank Economic Review, World Bank, vol. 18(3), pages 367-399.
    3. Sudhanshu Handa & Benjamin Davis, 2006. "The Experience of Conditional Cash Transfers in Latin America and the Caribbean," Working Papers 06-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    4. Jishnu Das, 2005. "Reassessing Conditional Cash Transfer Programs," The World Bank Research Observer, World Bank, vol. 20(1), pages 57-80.
    5. Jalan, Jyotsna & Ravallion, Martin, 2003. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity-Score Matching," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(1), pages 19-30, January.
    6. Sudhanshu Handa & Benjamin Davis, 2006. "The Experience of Conditional Cash Transfers in Latin America and the Caribbean," Development Policy Review, Overseas Development Institute, vol. 24(5), pages 513-536, September.
    7. Skoufias, Emmanuel, 2005. "PROGRESA and its impacts on the welfare of rural households in Mexico:," Research reports 139, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. John A. Maluccio, 2009. "Household targeting in practice: The Nicaraguan Red de Protección Social," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(1), pages 1-23.
    2. Paul Conal Winters & Vera Chiodi, 2011. "Human Capital Investment And Long‐Term Poverty Reduction In Rural Mexico," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(4), pages 515-538, May.
    3. Zavaleta, Carol & Berrang-Ford, Lea & Llanos-Cuentas, Alejandro & Cárcamo, César & Ford, James & Silvera, Rosa & Patterson, Kaitlin & Marquis, Grace S. & Harper, Sherilee, 2017. "Indigenous Shawi communities and national food security support: Right direction, but not enough," Food Policy, Elsevier, vol. 73(C), pages 75-87.
    4. Francesca Bastagli, 2009. "From Social Safety net to Social Policy? The Role of Conditional Cash Transfers in Welfare State Development in Latin America," Working Papers 60, International Policy Centre for Inclusive Growth.

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    More about this item

    Keywords

    Cash transfer programs; conditionality; Oportunidades; Latin America; Mexico; hazard models;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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