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Own and sibling effects of conditional cash transfer programs : theory and evidence from Cambodia

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  • Ferreira, Francisco H. G.
  • Filmer, Deon
  • Schady, Norbert

Abstract

Conditional cash transfers have been adopted by a large number of countries in the past decade. Although the impacts of these programs have been studied extensively, understanding of the economic mechanisms through which cash and conditions affect household decisions remains incomplete. This paper uses evidence from a program in Cambodia, where eligibility varied substantially among siblings in the same household, to illustrate these effects. A model of schooling decisions highlights three different effects of a child-specific conditional cash transfer: an income effect, a substitution effect, and a displacement effect. The model predicts that such a conditional cash transfer will increase enrollment for eligible children - due to all three effects - but have an ambiguous effect on ineligible siblings. The ambiguity arises from the interaction of a positive income effect with a negative displacement effect. These predictions are shown to be consistent with evidence from Cambodia, where the child-specific program makes modest transfers, conditional on school enrollment for children of middle-school age. Scholarship recipients were more than 20 percentage points more likely to be enrolled in school and 10 percentage points less likely to work for pay. However, the school enrollment and work of ineligible siblings was largely unaffected by the program.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5001.

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Date of creation: 01 Jul 2009
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Handle: RePEc:wbk:wbrwps:5001

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Related research

Keywords: Access to Finance; Primary Education; Education For All; Tertiary Education; Youth and Governance;

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Cited by:
  1. Barrientos, Armando & Nino-Zarazua, Miguel, 2010. "Social Assistance in Developing Countries Database Version 5.0," MPRA Paper 20001, University Library of Munich, Germany.
  2. Baez, Javier E. & Camacho, Adriana, 2011. "Assessing the long-term effects of conditional cash transfers on human capital : evidence from Colombia," Policy Research Working Paper Series 5681, The World Bank.
  3. World Bank, 2011. "Work and Family : Latin American and Caribbean Women in Search of a New Balance," World Bank Other Operational Studies 12489, The World Bank.
  4. Estevan, Fernanda, 2013. "The impact of conditional cash transfers on public education expenditures: A political economy approach," European Journal of Political Economy, Elsevier, vol. 32(C), pages 268-284.
  5. Del Rey, Elena & Estevan, Fernanda, 2013. "Conditional cash transfers and education quality in the presence of credit constraints," Economics of Education Review, Elsevier, vol. 34(C), pages 76-84.
  6. Lindskog, Annika, 2013. "The effect of siblings’ education on school-entry in the Ethiopian highlands," Economics of Education Review, Elsevier, vol. 34(C), pages 45-68.

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