The Coffee Crisis, Early Childhood Development, and Conditional Cash Transfers
AbstractThis paper examines the efficacy of three conditional cash transfer (CCT) programs in Honduras, Mexico, and Nicaragua in mitigating the potential negative effects of an income shock caused by falling prices of coffee, an important cash crop to many CCT participants. A theoretical household model is developed that demonstrates both the positive potential of CCTs to mitigate negative shocks effects on early childhood development and the negative potential of CCTs to exacerbate the impacts of a negative shock to early childhood development if the conditionality encourages households to shift resources from younger to older children to sustain their school attendance. The experimental design includes both CCT and non-CCT households and communities with and without coffee production. The paper finds that in Mexico the CCT mitigated the negative shock on child height-for-age z-scores, while in Nicaragua coffeeproducing households who participated in CCTs saw greater declines in z-scores. Findings for Honduras are largely inconclusive.
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Bibliographic InfoPaper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4715.
Date of creation: Mar 2011
Date of revision:
Find related papers by JEL classification:
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-04-23 (Agricultural Economics)
- NEP-ALL-2011-04-23 (All new papers)
- NEP-DEV-2011-04-23 (Development)
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- Emla Fitzsimons & Alice Mesnard, 2012. "How children's schooling and work are affected when their father leaves permanently: evidence from Colombia," IFS Working Papers W12/04, Institute for Fiscal Studies.
- Seth R. Gitter & James Manley & Vanya Slavchevska, 2010.
"How Effective are Cash Transfer Programs at Improving Nutritional Status?,"
2010-18, Towson University, Department of Economics, revised Dec 2012.
- Manley, James G. & Gitter, Seth R. & Slavchevska, Vanya, 2011. "How Effective are Cash Transfer Programs at Improving Nutritional Status?," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103157, Agricultural and Applied Economics Association.
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