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Wealthy, healthy and wise: does money compensate for being born into difficult conditions?

Author

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  • James Manley
  • Lia Fernald
  • Paul Gertler

Abstract

Recent studies have linked transfers from Mexican conditional cash transfer programme Oportunidades (formerly PROGRESA) to improvements in child development (Fernald et al ., 2008, 2009), but this work has been criticized as failing to account for endogeneity of the transfers. We create an exogenous instrument for the amount of transfers and use it to test programme and transfer effects. Applying the new instrument confirms that improvements in child development are more linked to the transfers themselves than to other portions of the programme, which involve medical check-ups as well as educational sessions for mothers.

Suggested Citation

  • James Manley & Lia Fernald & Paul Gertler, 2015. "Wealthy, healthy and wise: does money compensate for being born into difficult conditions?," Applied Economics Letters, Taylor & Francis Journals, vol. 22(2), pages 121-126, January.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:2:p:121-126
    DOI: 10.1080/13504851.2014.929618
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    Cited by:

    1. Libertad González & Sofia Trommlerová, 2021. "Prenatal Transfers and Infant Health: Evidence from Spain," Working Papers 1261, Barcelona School of Economics.
    2. González, Libertad & Trommlerová, Sofia, 2022. "Cash transfers before pregnancy and infant health," Journal of Health Economics, Elsevier, vol. 83(C).
    3. Cooper, Kerris & Stewart, Kitty, 2020. "Does household income affect children’s outcomes? A systematic review of the evidence," LSE Research Online Documents on Economics 107029, London School of Economics and Political Science, LSE Library.
    4. Cooper, Kerris & Stewart, Kitty, 2017. "Does Money Affect Children’s Outcomes? An update," LSE Research Online Documents on Economics 103494, London School of Economics and Political Science, LSE Library.
    5. Libertad González Luna & Sofia Trommlerová, 2021. "Prenatal transfers and infant health: Evidence from Spain," Economics Working Papers 1783, Department of Economics and Business, Universitat Pompeu Fabra.
    6. Mark Fransham & Ruth Patrick & Aaron Reeves & Kitty Stewart, 2020. "Did the introduction of the benefit cap in Britain harm mental health? A natural experiment approach," CASE Papers /221, Centre for Analysis of Social Exclusion, LSE.
    7. Kerris Cooper & Kitty Stewart, 2017. "Does Money Affect Children's Outcomes? An update," CASE Papers /203, Centre for Analysis of Social Exclusion, LSE.
    8. Kerris Cooper & Kitty Stewart, 2021. "Does Household Income Affect children’s Outcomes? A Systematic Review of the Evidence," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(3), pages 981-1005, June.
    9. Reeves, Aaron Samuel & Fransham, Mark James & Stewart, Kitty Judith & Patrick, Ruth, 2020. "Did the introduction of the benefit cap in Britain harm mental health? A natural experiment approach," LSE Research Online Documents on Economics 121527, London School of Economics and Political Science, LSE Library.

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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