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Peer Effects in Child Work Decisions: Evidence from PROGRESA Cash Transfer Program

Author

Listed:
  • Del Angel Marco

    (California State University Los Angeles, 5151 State University Drive, Los Angeles, CA 90032, USA)

  • Castillo Pónce Ramon A.

    (California State University Los Angeles, 5151 State University Drive, Los Angeles, CA 90032, USA)

  • Grados Zamudio Rogelio O.

    (Coordinación Nacional del Programa de Desarrollo Humano Oportunidades, Mexico City, Mexico)

Abstract

This study examines the spillover effects of the PROGRESA program on ineligible children’s participation in economic activities by exploiting the randomized design of the intervention and employing an instrumental variable strategy. We find that the incidence of child work among ineligible children is strongly affected by peer group’s child work decisions. We also find that peer group school attendance has a significant but smaller effect on ineligible children’s participation in economic activities. Our findings are relevant for policy makers as they show that cash transfer programs can have an indirect spillover effect on child work.

Suggested Citation

  • Del Angel Marco & Castillo Pónce Ramon A. & Grados Zamudio Rogelio O., 2025. "Peer Effects in Child Work Decisions: Evidence from PROGRESA Cash Transfer Program," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 25(3), pages 771-780.
    • Handle: RePEc:bpj:bejeap:v:25:y:2025:i:3:p:771-780:n:1011
    DOI: 10.1515/bejeap-2024-0368
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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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