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How Well have Social Protection Schemes in Chile Reduced Household Vulnerability?

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  • Maria S. Floro
  • Javier Bronfman

Abstract

This paper empirically investigates the impact of Chile's social protection programs called Red de Proteccion Social on household vulnerability during 1996-2006. It makes use of the CASEN (Encuesta de Caracterizacion Socioeconomica Nacional) panel household survey data involving 10,287individuals respondents, aged 15 years and older who were surveyed in the 1996, 2001 and 2006. It adopts the Chaudhuri et al (2002). method for estimating vulnerability and uses the difference-in-difference approach. Since access to the monetary transfers is not random, we use propensity score matching technique to address the problem of selection bias in testing the effect of the monetary transfers provided to targeted recipients under the social protection program. The effect of the programs are also examined on two household groups namely, the transitory poor and the chronic poor. Our results suggest that the impact of the monetary transfers on vulnerability is mixed. It seems to help lower the vulnerability of the transitory poor, but has little impact on the chronic poor. The results are also sensitive to the type of estimation method and difference-in-difference technique used.

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Bibliographic Info

Paper provided by American University, Department of Economics in its series Working Papers with number 2012-03.

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Date of creation: 2012
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Handle: RePEc:amu:wpaper:2012-03

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Web page: http://www.american.edu/cas/economics/

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  1. Claudio Agostini & Phillip Brown & Diana Paola Góngora, 2009. "Public Finance, Governance, and Cash Transfers in Alleviating Poverty and Inequality in Chile," ILADES-Georgetown University Working Papers inv225, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
  2. Carolyn Heinrich & Alessandro Maffioli & Gonzalo Vázquez, 2010. "A Primer for Applying Propensity-Score Matching," SPD Working Papers 1005, Inter-American Development Bank, Office of Strategic Planning and Development Effectiveness (SPD).
  3. Dante Contreras, 2003. "Poverty and Inequality in a Rapid Growth Economy: Chile 1990-96," Journal of Development Studies, Taylor & Francis Journals, vol. 39(3), pages 181-200.
  4. Cesar Calvo & Stefan Dercon, 2005. "Measuring Individual Vulnerability," Economics Series Working Papers 229, University of Oxford, Department of Economics.
  5. Raghbendra Jha & Katsushi S Imai & Raghav Gaiha, 2009. "Poverty, Undernutrition and Vulnerability in Rural India: Public Works versus Food Subsidy," Working Papers id:1907, eSocialSciences.
  6. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
  7. Sascha O. Becker & Marco Caliendo, 2007. "mhbounds - Sensitivity Analysis for Average Treatment Effects," Discussion Papers of DIW Berlin 659, DIW Berlin, German Institute for Economic Research.
  8. Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January.
  9. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 12 Feb 2014.
  10. Hoddinott, John & Quisumbing, Agnes, 2003. "Methods for microeconometric risk and vulnerability assessments," Social Protection Discussion Papers 29138, The World Bank.
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