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Long-Term Financial Incentives and Investment in Daughters: Evidence From Conditional Cash Transfers In North India

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Nistha Sinha
Joanne Yoong ()

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Abstract

Since the early 1990s, several states in India have introduced financial incentive programs to discourage son preference among parents and to encourage investments in daughters' education and health. This study evaluates one such program in the state of Haryana, Apni Beti Apna Dhan (Our Daughter, Our Wealth). Since 1994, eligible parents in Haryana are offered a financial incentive if they give birth to a daughter. The incentive consists of an immediate cash grant and a long-term savings bond redeemable upon the daughter's 18th birthday provided she is unmarried, with additional bonuses for education. While no specific program participation data is available, the authors estimate early intent-to-treat program effects on mothers (sex ratio among live children, fertility preferences) and children (mother's use of antenatal care, survival, nutritional status, immunization, schooling) using statewide household survey data on fertility and child health and constructing proxies for household and individual program eligibility. Their results based on this limited data imply that Apni Beti Apna Dhan had a positive effect on the sex ratio of living children, but inconclusive effects on mothers' preferences for having female children as well as total desired fertility. They also find that parents increased their investment in daughters' human capital as a result of the program. Families made greater post-natal health investments in eligible girls, with some mixed evidence of improving health status in the short and medium term. Further evidence also suggests that the early cohort of eligible school-age girls are not significantly more likely to attend school; however, conditional on first attending any school, they may be more likely to continue their education.

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Paper provided by RAND Corporation Publications Department in its series Working Papers with number 667.

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Length: 38 pages
Date of creation: Feb 2009
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Handle: RePEc:ran:wpaper:667

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Find related papers by JEL classification:
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Schultz, T.P., 1999. "Women's Role in the Agricultural Household: Bargaining and Human Capital," Papers 803, Yale - Economic Growth Center.
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  2. T. Paul Schultz, 2001. "Why Governments Should Invest More to Educate Girls," Working Papers 836, Economic Growth Center, Yale University.
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  3. Strauss, John & Thomas, Duncan, 1995. "Human resources: Empirical modeling of household and family decisions," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 34, pages 1883-2023 Elsevier. [Downloadable!] (restricted)
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  1. Das Gupta, Monica & Chung, Woojin & Shuzhuo, Li, 2009. "Is there an incipient turnaround in Asia's"missing girls"phenomenon ?," Policy Research Working Paper Series 4846, The World Bank. [Downloadable!]
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This page was last updated on 2009-11-12.


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