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Cash transfers, conditions, school enrollment, and child work : evidence from a randomized experiment in Ecuador

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Author Info
Schady, Norbert
Araujo, Maria Caridad

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Abstract

The impact of cash transfer programs on the accumulation of human capital is a topic of great policy importance. An attendant question is whether program effects are larger when transfers are"conditioned"on certain behaviors, such as a requirement that households enroll their children in school. This paper uses a randomized study design to analyze the impact of the Bono de Desarrollo Humano (BDH), a cash transfer program, on enrollment and child work among poor children in Ecuador. There are two main results. First, the BDH program had a large, positive impact on school enrollment, about 10 percentage points, and a large, negative impact on child work, about 17 percentage points. Second, the fact that some households believed that there was a school enrollment requirement attached to the transfers, even though such a requirement was never enforced or monitored in Ecuador, helps explain the magnitude of program effects.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3930.

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Date of creation: 01 Jun 2006
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Handle: RePEc:wbk:wbrwps:3930

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Keywords: Small Area Estimation Poverty Mapping; Primary Education; Land and Real Estate Development; Municipal Housing and Land; Real Estate Development;

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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. Joshua Angrist & Eric Bettinger & Eric Bloom & Elizabeth King & Michael Kremer, 2002. "Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment," Natural Field Experiments 0004, The Field Experiments Website. [Downloadable!]
    Other versions:
  2. Glewwe, Paul & Jacoby, Hanan G, 1995. "An Economic Analysis of Delayed Primary School Enrollment in a Low Income Country: The Role of Early Childhood Nutrition," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 156-69, February. [Downloadable!] (restricted)
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  5. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-61, September. [Downloadable!] (restricted)
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  6. Laura B. Rawlings, 2005. "Evaluating the Impact of Conditional Cash Transfer Programs," World Bank Research Observer, Oxford University Press, vol. 20(1), pages 29-55.
  7. Jere Behrman & James C. Knowles, . "How Strongly is Child Schooling Associated with Household Income?," CARESS Working Papres 97-22, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences. [Downloadable!]
  8. Powell, James L, 1986. "Symmetrically Trimmed Least Squares Estimation for Tobit Models," Econometrica, Econometric Society, vol. 54(6), pages 1435-60, November. [Downloadable!] (restricted)
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  10. Jishnu Das, 2005. "Reassessing Conditional Cash Transfer Programs," World Bank Research Observer, Oxford University Press, vol. 20(1), pages 57-80.
  11. Filmer, Deon & Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank. [Downloadable!]
  12. J. Fitzgerald & P. Gottschalk & R. Moffitt, . "An Analysis of Sample Attrition in Panel Data: The Michigan Panel Study of Income Dynamics," Institute for Research on Poverty Discussion Papers 1156-98, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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  13. Eric V. Edmonds, 2007. "Child Labor," IZA Discussion Papers 2606, Institute for the Study of Labor (IZA). [Downloadable!]
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  14. J.D. Angrist & Guido W. Imbens & D.B. Rubin, 1993. "Identification of Causal Effects Using Instrumental Variables," NBER Technical Working Papers 0136, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Skoufias, Emmanuel, 2005. "PROGRESA and its impacts on the welfare of rural households in Mexico:," Research reports 139, International Food Policy Research Institute (IFPRI). [Downloadable!]
  16. Angrist, Joshua D., 1997. "Conditional independence in sample selection models," Economics Letters, Elsevier, vol. 54(2), pages 103-112, February. [Downloadable!] (restricted)
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  17. Ravallion, Martin & Wodon, Quentin, 2000. "Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy," Economic Journal, Royal Economic Society, vol. 110(462), pages C158-75, March. [Downloadable!] (restricted)
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  18. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366 Elsevier. [Downloadable!] (restricted)
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  19. FranÁois Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2003. "Conditional Cash Transfers, Schooling, and Child Labor: Micro-Simulating Brazil's Bolsa Escola Program," World Bank Economic Review, Oxford University Press, vol. 17(2), pages 229-254, December.
  20. 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. [Downloadable!] (restricted)
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  21. Kenneth Y. Chay & James L. Powell, 2001. "Semiparametric Censored Regression Models," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 29-42, Fall. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, 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. Edmonds, Eric V. & Schady, Norbert, 2008. "Poverty alleviation and child labor," Policy Research Working Paper Series 4702, The World Bank. [Downloadable!]
    Other versions:
  2. Cunningham, Wendy & Jacobsen, Joyce P., 2008. "Earnings inequality within and across gender, racial, and ethnic groups in four Latin American Countries," Policy Research Working Paper Series 4591, The World Bank. [Downloadable!]
  3. Ponce, Juan & Bedi, Arjun S., 2008. "The Impact of a Cash Transfer Program on Cognitive Achievement: The Bono de Desarrollo Humano of Ecuador," IZA Discussion Papers 3658, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Jorge M. Agüero & Michael R. Carter & Ingrid Woolard, 2007. "The Impact of Unconditional Cash Transfers on Nutrition: The South African Child Support Grant," Working Papers 39, International Policy Centre for Inclusive Growth. [Downloadable!]
  5. Dammert, Ana C., 2008. "Heterogeneous Impacts of Conditional Cash Transfers: Evidence from Nicaragua," IZA Discussion Papers 3653, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Ferdinando Regalía & Leslie Castro, 2007. "Performance-based Incentives for Health: Demand- and Supply-Side Incentives in the Nicaraguan Red de Protección Social," Working Papers 119, Center for Global Development. [Downloadable!]
  7. Marco Manacorda, 2008. "The Cost of Grade Retention," CEP Discussion Papers dp0878, Centre for Economic Performance, LSE. [Downloadable!]
  8. Amanda Glassman & Jessica Todd, 2007. "Performance-Based Incentives for Health: Conditional Cash Transfer Programs in Latin America and the Caribbean," Working Papers 120, Center for Global Development. [Downloadable!]
  9. Barrera-Osorio, Felipe & Bertrand, Marianne & L. Linden, Leigh & Perez-Calle, Francisco, 2008. "Conditional cash transfers in education : design features, peer and sibling effects evidence from a randomized experiment in Colombia," Policy Research Working Paper Series 4580, The World Bank. [Downloadable!]
    Other versions:
  10. de Brauw, Alan & Hoddinott, John, 2008. "Must conditional cash transfer programs be conditioned to be effective?: The impact of conditioning transfers on school enrollment in Mexico," IFPRI discussion papers 757, International Food Policy Research Institute (IFPRI). [Downloadable!]
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