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Can conditional cash transfers serve as safety nets to keep children at school and out of the labor market?

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Author Info

  • de Janvry, Alain

    ()
    (University of California, Berkeley. Dept of agricultural and resource economics and policy)

  • Finan, Frederico
  • Sadoulet, Elisabeth

    ()
    (University of California, Berkeley. Dept of agricultural and resource economics and policy)

  • Vakis, Renos

Abstract

Conditional cash transfer (CCT) programs for education are known to be effective in increasing educational achievements among the rural poor. Using panel data from the Progresa experience with randomized treatment, we show that there is strong state dependence in school attendance. Short term shocks that take children out of school will consequently have long term consequences on their educational achievements. We show that idiosyncratic and covariate shocks do indeed push parents to take children out of school and to use child labor as risk coping instruments. However, CCT help protect children from these shocks, creating an additional benefit from these programs as effective safety nets with long term benefits.

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Bibliographic Info

Paper provided by University of California at Berkeley, Department of Agricultural and Resource Economics and Policy in its series CUDARE Working Paper Series with number 0999.

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Length: 31 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:are:cudare:0999

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Related research

Keywords: child labor; education; government aid; rural poverty;

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References

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  1. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
  2. Canals-Cerda, Jose & Ridao-Cano, Cristobal, 2004. "The dynamics of school and work in rural Bangladesh," Policy Research Working Paper Series 3330, The World Bank.
  3. Lorenzo Guarcello & Fabrizia Mealli & Furio Rosati, 2010. "Household vulnerability and child labor: the effect of shocks, credit rationing, and insurance," Journal of Population Economics, Springer, vol. 23(1), pages 169-198, January.
  4. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
  5. Eric V. Edmonds, 2004. "Does Illiquidity Alter Child Labor and Schooling Decisions? Evidence from Household Responses to Anticipated Cash Transfers in South Africa," NBER Working Papers 10265, National Bureau of Economic Research, Inc.
  6. Skoufias, Emmanuel & Parker, Susan W., 2001. "Conditional cash transfers and their impact on child work and schooling," FCND discussion papers 123, International Food Policy Research Institute (IFPRI).
  7. Reardon, Thomas & Matlon, Peter & Delgado, Christopher, 1988. "Coping with household-level food insecurity in drought-affected areas of Burkina Faso," World Development, Elsevier, vol. 16(9), pages 1065-1074, September.
  8. Duryea, Suzanne & Lam, David & Levison, Deborah, 2007. "Effects of economic shocks on children's employment and schooling in Brazil," Journal of Development Economics, Elsevier, vol. 84(1), pages 188-214, September.
  9. Funkhouser, Edward, 1999. "Cyclical economic conditions and school attendance in Costa Rica," Economics of Education Review, Elsevier, vol. 18(1), pages 31-50, February.
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Cited by:
  1. Denis Cogneau & Remi Jedwab, 2008. "Family Income and Child Outcomes:The 1990 Cocoa Price Shock in Cote d'Ivoire," CEDI Discussion Paper Series 08-13, Centre for Economic Development and Institutions(CEDI), Brunel University.
  2. Hernandez-Hernandez, Emilio & Sam, Abdoul G. & Gonzalez-Vega, Claudio & Chen, Joyce J., 2012. "Does the insurance effect of public and private transfers favor financial deepening? evidence from rural Nicaragua," MPRA Paper 38339, University Library of Munich, Germany.
  3. Gitter, Seth R. & Barham, Bradford, 2007. "Women's Power, Conditional Cash Transfers and Schooling in Nicaragua," Staff Paper Series 517, University of Wisconsin, Agricultural and Applied Economics.
  4. Jishnu Das & Stefan Dercon & James Habyarimana & Pramila Krishnan, 2004. "Teacher Shocks and Student Learning: Evidence from Zambia," CSAE Working Paper Series 2004-26, Centre for the Study of African Economies, University of Oxford.
  5. Gitter, Seth R. & Barham, Bradford L., 2007. "Credit, Natural Disasters, Coffee, and Educational Attainment in Rural Honduras," World Development, Elsevier, vol. 35(3), pages 498-511, March.
  6. Emanuela Galasso, 2011. "Alleviating extreme poverty in Chile: the short term effects of Chile Solidario," Estudios de Economia, University of Chile, Department of Economics, vol. 38(1 Year 20), pages 101-127, June.

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