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

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

Abstract

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.

Suggested Citation

  • Álvarez, Carola & Devoto, Florencia & Winters, Paul, 2008. "Why do Beneficiaries Leave the Safety Net in Mexico? A Study of the Effects of Conditionality on Dropouts," World Development, Elsevier, vol. 36(4), pages 641-658, April.
  • Handle: RePEc:eee:wdevel:v:36:y:2008:i:4:p:641-658
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    References listed on IDEAS

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    1. Giovanni Andrea Cornia & Frances Stewart, 1993. "Two errors of targeting," Journal of International Development, John Wiley & Sons, Ltd., vol. 5(5), pages 459-496, September.
      • Giovanni Andrea Cornia & Frances Stewart, 1993. "Two Errors of Targeting," Papers iopeps93/54, Innocenti Occasional Papers, Economic Policy Series.
    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. Jishnu Das, 2005. "Reassessing Conditional Cash Transfer Programs," World Bank Research Observer, World Bank Group, vol. 20(1), pages 57-80.
    4. 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).
    5. Ravallion, Martin, 2003. "Targeted transfers in poor countries : revisiting the tradeoffs and policy options," Policy Research Working Paper Series 3048, The World Bank.
    6. 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.
    7. 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.
    8. 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.
    9. Skoufias, Emmanuel, 2005. "PROGRESA and its impacts on the welfare of rural households in Mexico:," Research reports 139, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Paul Conal Winters & Vera Chiodi, 2011. "Human Capital Investment And Long‐Term Poverty Reduction In Rural Mexico," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(4), pages 515-538, May.
    2. González-Flores, Mario & Heracleous, Maria & Winters, Paul, 2012. "Leaving the Safety Net: An Analysis of Dropouts in an Urban Conditional Cash Transfer Program," World Development, Elsevier, vol. 40(12), pages 2505-2521.
    3. repec:eee:wdevel:v:99:y:2017:i:c:p:498-517 is not listed on IDEAS
    4. repec:eee:wdevel:v:105:y:2018:i:c:p:1-12 is not listed on IDEAS
    5. Rodríguez, Luis C. & Pascual, Unai & Muradian, Roldan & Pazmino, Nathalie & Whitten, Stuart, 2011. "Towards a unified scheme for environmental and social protection: Learning from PES and CCT experiences in developing countries," Ecological Economics, Elsevier, vol. 70(11), pages 2163-2174, September.
    6. Heinrich, Carolyn J. & Brill, Robert, 2015. "Stopped in the Name of the Law: Administrative Burden and its Implications for Cash Transfer Program Effectiveness," World Development, Elsevier, vol. 72(C), pages 277-295.
    7. Raymundo M. Campos Vázquez & Carlos Chiapa & Eduardo Alma S. Santillán, 2012. "Análisis de trayectorias de los hogares beneficiarios del programa Oportunidades," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 27(2), pages 295-346.
    8. repec:eee:wdevel:v:97:y:2017:i:c:p:165-177 is not listed on IDEAS

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