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Why do Beneficiaries Leave the Safety Net in Mexico? A Study of the Effects of Conditionality on Dropouts

  • Álvarez, Carola
  • Devoto, Florencia
  • Winters, Paul

Summary This paper analyzes the characteristics of beneficiaries who drop out of the Mexican conditional cash transfer program Oportunidades to determine if dropping out of the program is a result of self-targeting by the non-poor or the exclusion of the target poor population. Using Oportunidades' administrative data and a discrete duration model, the analysis indicates that wealthier beneficiaries have greater odds of dropping out, suggesting that conditionality acts as a screening device. The results also indicate that administrative factors and the provider of health services to beneficiaries also have an important influence on whether beneficiaries remain in or leave the program.

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Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 4 (April)
Pages: 641-658

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:4:p:641-658
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  1. Alain de Janvry & Elisabeth Sadoulet, 2006. "Making Conditional Cash Transfer Programs More Efficient: Designing for Maximum Effect of the Conditionality," World Bank Economic Review, World Bank Group, vol. 20(1), pages 1-29.
  2. Emanuela Galasso & Martin Ravallion, 2004. "Social Protection in a Crisis: Argentina's Plan Jefes y Jefas," World Bank Economic Review, World Bank Group, vol. 18(3), pages 367-399.
  3. Giovanni Andrea Cornia & Frances Stewart, 1993. "Two errors of targeting," Journal of International Development, John Wiley & Sons, Ltd., vol. 5(5), pages 459-496, 09.
    • Giovanni Andrea Cornia & Frances Stewart, 1993. "Two Errors of Targeting," Papers iopeps93/54, Innocenti Occasional Papers, Economic Policy Series.
  4. Skoufias, Emmanuel, 2005. "PROGRESA and its impacts on the welfare of rural households in Mexico:," Research reports 139, International Food Policy Research Institute (IFPRI).
  5. Jishnu Das, 2005. "Reassessing Conditional Cash Transfer Programs," World Bank Research Observer, World Bank Group, vol. 20(1), pages 57-80.
  6. Martin Ravallion, 2003. "Targeted transfers in poor countries : revisiting the trade-offs and policy options," Social Protection Discussion Papers 27869, The World Bank.
  7. Maluccio, John A. & Flores, Rafael, 2005. "Impact evaluation of a conditional cash transfer program: the Nicaraguan Red de Protección Social," Research reports 141, International Food Policy Research Institute (IFPRI).
  8. Jalan, Jyotsna & Ravallion, Martin, 2003. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity-Score Matching," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(1), pages 19-30, January.
  9. 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.
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