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Heterogeneous Impacts of Conditional Cash Transfers: Evidence from Nicaragua

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  • Dammert, Ana C.

    ()
    (Carleton University)

Abstract

In the last decade, the most popular policy tool used to increase human capital in developing countries has been the conditional cash transfer program. A large literature has shown significant mean impacts on schooling, health, and child labor. This paper examines heterogeneous effects using random-assignment data from the Red de Proteccion Social in rural Nicaragua. Using interactions between the targeting criteria and the treatment indicator, estimates suggest that children located in more impoverished localities experienced a larger impact of the program on schooling in 2001, but this finding is reversed in 2002. Estimated quantile treatment effects indicate that there is considerable heterogeneity in the impacts of the program on the distribution of food expenditures, as well as total expenditures. In particular, households at the lower end of the expenditure distribution experienced a smaller increase in expenditures. This paper also presents evidence of the rank invariance assumption to help clarify the interpretation of the quantile treatment effect in the development literature context.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3653.

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Length: 49 pages
Date of creation: Aug 2008
Date of revision:
Publication status: published in: Economic Development and Cultural Change, 2009, 58(1), 53-84
Handle: RePEc:iza:izadps:dp3653

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Keywords: conditional cash transfers; quantile treatment effect; Nicaragua;

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References

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  1. Duflo, Esther & Glennerster, Rachel & Kremer, Michael, 2008. "Using Randomization in Development Economics Research: A Toolkit," Handbook of Development Economics, Elsevier, Elsevier.
  2. Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes, 2006. "What Mean Impacts Miss: Distributional Effects of Welfare Reform Experiments," American Economic Review, American Economic Association, American Economic Association, vol. 96(4), pages 988-1012, September.
  3. Deon Filmer & Norbert Schady, 2008. "Getting Girls into School: Evidence from a Scholarship Program in Cambodia," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 581-617.
  4. Behrman, Jere R & Sengupta, Piyali & Todd, Petra, 2005. "Progressing through PROGRESA: An Impact Assessment of a School Subsidy Experiment in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 237-75, October.
  5. Skoufias, Emmanuel & Parker, Susan W., 2001. "Conditional cash transfers and their impact on child work and schooling," FCND briefs 123, International Food Policy Research Institute (IFPRI).
  6. Heckman, James J & Smith, Jeffrey, 1997. "Making the Most Out of Programme Evaluations and Social Experiments: Accounting for Heterogeneity in Programme Impacts," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 64(4), pages 487-535, October.
  7. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, Elsevier, vol. 74(1), pages 199-250, June.
  8. Maluccio, John A. & Flores, Rafael, 2004. "Impact evaluation of a conditional cash transfer program," FCND briefs 184, International Food Policy Research Institute (IFPRI).
  9. Emmanuel Skoufias & Susan Wendy Parker, 2001. "Conditional Cash Transfers and Their Impact on Child Work and Schooling: Evidence from the PROGRESA Program in Mexico," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  10. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2002. "Is the Threat of Reemployment Services More Effective than the Services Themselves? Experimental Evidence from the UI System," NBER Working Papers 8825, National Bureau of Economic Research, Inc.
  11. Schady, Norbert & Araujo, Maria Caridad, 2006. "Cash transfers, conditions, school enrollment, and child work : evidence from a randomized experiment in Ecuador," Policy Research Working Paper Series 3930, The World Bank.
  12. Ravallion, Martin, 2005. "Evaluating anti-poverty programs," Policy Research Working Paper Series 3625, The World Bank.
  13. Sergio Firpo, 2007. "Efficient Semiparametric Estimation of Quantile Treatment Effects," Econometrica, Econometric Society, Econometric Society, vol. 75(1), pages 259-276, 01.
  14. James J. Heckman & Jeffrey A. Smith, 1995. "Assessing the Case for Social Experiments," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(2), pages 85-110, Spring.
  15. Djebbari, Habiba & Smith, Jeffrey, 2008. "Heterogeneous impacts in PROGRESA," Journal of Econometrics, Elsevier, Elsevier, vol. 145(1-2), pages 64-80, July.
  16. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, Econometric Society, vol. 46(1), pages 33-50, January.
  17. Alberto Abadie & Joshua D. Angrist & Guido W. Imbens, 1998. "Instrumental Variables Estimation of Quantile Treatment Effects," NBER Technical Working Papers 0229, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Melba V. Tutor, 2014. "The Impact of Philippines’ Conditional Cash Transfer Program on Consumption," UP School of Economics Discussion Papers, University of the Philippines School of Economics 201405, University of the Philippines School of Economics.
  2. Djebbari, Habiba & Smith, Jeffrey A., 2008. "Heterogeneous Impacts in PROGRESA," IZA Discussion Papers 3362, Institute for the Study of Labor (IZA).
  3. Habibov, Nazim N., 2012. "Does childcare have an impact on the quality of parent–child interaction? Evidence from post-Soviet Kyrgyzstan, Tajikistan, and Uzbekistan," Children and Youth Services Review, Elsevier, Elsevier, vol. 34(12), pages 2367-2373.
  4. Andrew Zeitlin & Stefano Caria & Richman Dzene & Petr Janský & Emmanuel Opoku & Francis Teal, 2010. "Heterogeneous returns and the persistence of agricultural technology adoption," CSAE Working Paper Series 2010-37, Centre for the Study of African Economies, University of Oxford.
  5. de Hoop, Jacobus & Rosati, Furio C., 2013. "Cash Transfers and Child Labour," IZA Discussion Papers 7496, Institute for the Study of Labor (IZA).
  6. Eric V. Edmonds & Maheshwor Shrestha, 2013. "You Get What You Pay For: Schooling Incentives and Child Labor," NBER Working Papers 19279, National Bureau of Economic Research, Inc.
  7. Mauricio Moura & Caio Piza & Marcos Poplawski-Ribeiro, 2011. "The Distributive Effects of Land Titleon Labor Supply," IMF Working Papers 11/131, International Monetary Fund.
  8. Del Carpio, Ximena V. & Loayza, Norman V., 2012. "The impact of wealth on the amount and quality of child labor," Policy Research Working Paper Series 5959, The World Bank.

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