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On the Design of Education Conditional Cash Transfer Programs and non Education Outcomes: The Case of Teenage Pregnancy

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  • Darwin Cortés
  • Juan Gallego
  • Darío Maldonado

Abstract

We investigate the effect of education Conditional Cash Transfer programs (CCTs) on teenage pregnancy. Our main concern is with how the size and sign of the effect may depend on the design of the program. Using a simple model we show that an education CCT that conditions renewal on school performance reduces teenage pregnancy; the program can increase teenage pregnancy if it does not condition on school performance. Then, using an original data base, we estimate the causal impact on teenage pregnancy of two education CCTs implemented in Bogotá (Subsidio Educativo, SE, and Familias en Acción, FA); both programs differ particularly on whether school success is a condition for renewal or not. We show that SE has negative average effect on teenage pregnancy while FA has a null average effect. We also find that SE has either null or no effect for adolescents in all age and grade groups while FA has positive, null or negative effects for adolescents in different age and grade groups. Since SE conditions renewal on school success and FA does not, we can argue that the empirical results are consistent with the predictions of our model and that conditioning renewal of the subsidy on school success crucially determines the effect of the subsidy on teenage pregnancy.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3531.

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Date of creation: 2011
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Handle: RePEc:ces:ceswps:_3531

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Keywords: teenage risk taking behavior; teenage pregnancy; education; conditional cash transfers; incentives;

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References

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  1. V. Joseph Hotz & Seth G. Sanders & Susan Williams McElroy, 1999. "Teenage Childbearing and Its Life Cycle Consequences: Exploiting a Natural Experiment," NBER Working Papers 7397, National Bureau of Economic Research, Inc.
  2. repec:cdl:indrel:316 is not listed on IDEAS
  3. Carmen Elisa Florez & Jairo Núñez, 2002. "Teenage Childbearing In Latin American Countries," DOCUMENTOS CEDE 003547, UNIVERSIDAD DE LOS ANDES-CEDE.
  4. Esther Duflo, 2000. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," NBER Working Papers 7860, National Bureau of Economic Research, Inc.
  5. Lundberg, S. & Plotnick, R.D., 1994. "Adolescent Premarital Childbearing: Do Economic Incentives Matters?," Discussion Papers in Economics at the University of Washington 94-4, Department of Economics at the University of Washington.
  6. Grant Miller, 2010. "Contraception as Development? New Evidence from Family Planning in Colombia," Economic Journal, Royal Economic Society, vol. 120(545), pages 709-736, 06.
  7. SandraE. Black & PaulJ. Devereux & KjellG. Salvanes, 2008. "Staying in the Classroom and out of the maternity ward? The effect of compulsory schooling laws on teenage births," Economic Journal, Royal Economic Society, vol. 118(530), pages 1025-1054, 07.
  8. Geronimus, Arline T & Korenman, Sanders, 1992. "The Socioeconomic Consequences of Teen Childbearing Reconsidered," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1187-214, November.
  9. 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.
  10. Sarah Baird & Ephraim Chirwa & Craig McIntosh & Berk Özler, 2010. "The short‐term impacts of a schooling conditional cash transfer program on the sexual behavior of young women," Health Economics, John Wiley & Sons, Ltd., vol. 19(S1), pages 55-68, September.
  11. Holmlund, Helena, 2004. "Estimating Long-Term Consequences of Teenage Childbearing - An Examination of the Siblings Approach," Working Paper Series 1/2004, Swedish Institute for Social Research.
  12. Felipe Barrera-Osorio & Marianne Bertrand & Leigh L. Linden & Francisco Perez-Calle, 2011. "Improving the Design of Conditional Transfer Programs: Evidence from a Randomized Education Experiment in Colombia," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 167-95, April.
  13. Wolfe, Barbara & Wilson, Kathryn & Haveman, Robert, 2001. "The role of economic incentives in teenage nonmarital childbearing choices," Journal of Public Economics, Elsevier, vol. 81(3), pages 473-511, September.
  14. de Janvry, Alain & Finan, Frederico & Sadoulet, Elisabeth & Vakis, Renos, 2006. "Can conditional cash transfer programs serve as safety nets in keeping children at school and from working when exposed to shocks?," Journal of Development Economics, Elsevier, vol. 79(2), pages 349-373, April.
  15. Carmen Elisa Flórez & Victoria Eugenia Soto, 2008. "El estado de la salud sexual y reproductiva en América Latina y el Caribe: Una visión global," Research Department Publications 4572, Inter-American Development Bank, Research Department.
  16. Sarah Baird & Ephraim Chirwa & Craig McIntosh & Berk Ozler, 2009. "The Short-Term Impacts of as Schooling Cash Transfer Program on the Sexual Behavior of Young Women," Working Papers 2010-10, The George Washington University, Institute for International Economic Policy.
  17. Joshua D. Angrist & William N. Evans, 1996. "Schooling and Labor Market Consequences of the 1970 State Abortion Reforms," NBER Working Papers 5406, National Bureau of Economic Research, Inc.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Políticas para reducir los riesgos que corren los jóvenes: el efecto de las Transferencias Condicionales en Dinero
    by Darío Maldonado in Foco Económico on 2011-08-23 12:00:00
  2. Políticas para reducir los riesgos que corren los jóvenes: el efecto de las Transferencias Condicionales en Dinero
    by Darío Maldonado in Foco Económico on 2012-08-23 12:00:00
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Cited by:
  1. Felipe Barrera-Osorio & Dario Maldonado & Catherine Rodríguez, 2012. "Calidad de la educación básica y media en Colombia: diagnóstico y propuestas," DOCUMENTOS DE TRABAJO 010078, UNIVERSIDAD DEL ROSARIO.

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