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The Impact of Positive and Negative Income Changes on the Height and Weight of Young Children

Author

Listed:
  • Thomas Buser
  • Hessel Oosterbeek
  • Erik Plug
  • Juan Ponce
  • José Rosero

Abstract

We estimate the impact of changes in unearned income on the height and weight of young children in a developing country. As a source of income variation we use a change in the eligibility criteria for receipt of an unconditional cash transfer in Ecuador. Two years after families lost the transfer, which they had received for seven years, their young children weigh less and are shorter and more likely to be stunted than young children in families that kept the cash transfer. We find no statistically significant effect on young children's height and weight two years after gaining the cash transfer. Information on household expenditures suggests that a reduction of food expenditures by households that lost the transfer is the main mechanism behind this finding.

Suggested Citation

  • Thomas Buser & Hessel Oosterbeek & Erik Plug & Juan Ponce & José Rosero, 2017. "The Impact of Positive and Negative Income Changes on the Height and Weight of Young Children," The World Bank Economic Review, World Bank, vol. 31(3), pages 786-808.
    • Handle: RePEc:oup:wbecrv:v:31:y:2017:i:3:p:786-808.
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    File URL: http://hdl.handle.net/10.1093/wber/lhw004
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    Cited by:

    1. Vladimir Hlasny, 2024. "One Thousand and One Nights’ Struggle for Survival: Tales of Child Undernourishment in Arab Countries," Hacienda Pública Española / Review of Public Economics, IEF, vol. 249(2), pages 109-155, June.
    2. María Gabriela Palacio Ludeña, 2021. "Falling through the Cracks: Digital Infrastructures of Social Protection in Ecuador," Development and Change, International Institute of Social Studies, vol. 52(4), pages 805-828, July.
    3. Anne Esser & Charlotte Bilo & Raquel Tebaldi, 2019. "How can cash transfer programmes work for women and children? A review of gender- and child-sensitive design features," Working Papers 178, International Policy Centre.
    4. Albin Salmon & Vincent Fleuriet & Paul Vertier, 2025. "Currency Crises and Malnutrition," Working papers 1003, Banque de France.
    5. H. Xavier Jara & María Gabriela Palacio Ludeña, 2024. "Rethinking social assistance amid the COVID‐19 pandemic: Guaranteeing the right to income security in Ecuador," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(3), pages 1738-1764, April.
    6. Juanita Bloomfield & José María Cabrera, 2026. "Long‐term impacts on education of a cash transfer during early life," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 45(1), January.
    7. Guido Neidhöfer & Miguel Niño‐Zarazúa, 2019. "The Long(er)‐Term Impacts of Chile Solidario on Human Capital and Labor Income," Population and Development Review, The Population Council, Inc., vol. 45(S1), pages 209-244, December.
    8. Guido Neidhöfer & Miguel Niño‐Zarazúa, 2019. "The Long(er)‐Term Impacts of Chile Solidario on Human Capital and Labor Income," Population and Development Review, The Population Council, Inc., vol. 45(S1), pages 209-244, December.
    9. Song, Yang & Cheng, Zerui, 2024. "The impact of welfare design on consumption patterns of the poor: Evidence from the recent Dibao reform in rural China11This research is supported by National Social Science Foundation of China (22AZD114 and 21ZDA098). The authors would like to thank," China Economic Review, Elsevier, vol. 87(C).
    10. Bosch, Mariano & Schady, Norbert, 2019. "The effect of welfare payments on work: Regression discontinuity evidence from Ecuador," Journal of Development Economics, Elsevier, vol. 139(C), pages 17-27.
    11. Thomas Buser, 2015. "The Effect of Income on Religiousness," American Economic Journal: Applied Economics, American Economic Association, vol. 7(3), pages 178-195, July.

    More about this item

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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