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Do Education and Health Conditions Matter in a Large Cash Transfer? Evidence from a Honduran Experiment

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  • Fiorella Benedetti
  • Pablo Ibarrarán
  • Patrick J. McEwan

Abstract

The article analyzes a new Honduran conditional cash transfer experiment (Bono 10,000) in which 150 poor villages (of 300) were treated. The per household transfer was much larger than an earlier experiment, but it yielded smaller short-run effects on school enrollment, child labor participation, and use of health services. One explanation is that Bono 10,000 did not apply conditions to all children: only one school-age child in participating households was subject to the education condition, and young children and mothers were only subject to the health conditions in the absence of school-age children. Consistent with this, we find a large enrollment increase (and offsetting decrease in labor participation) among households with one eligible child and smaller and insignificant effects on children in larger households. We only find significant effects on health service use among children and mothers in the absence of a school-age child (despite a smaller household transfer). The heterogeneity is not driven by variables correlated with the number of children such as household size, child age, birth order, or poverty.

Suggested Citation

  • Fiorella Benedetti & Pablo Ibarrarán & Patrick J. McEwan, 2016. "Do Education and Health Conditions Matter in a Large Cash Transfer? Evidence from a Honduran Experiment," Economic Development and Cultural Change, University of Chicago Press, vol. 64(4), pages 759-793.
  • Handle: RePEc:ucp:ecdecc:doi:10.1086/686583
    DOI: 10.1086/686583
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    1. Sarah Baird & Craig McIntosh & Berk Özler, 2011. "Cash or Condition? Evidence from a Cash Transfer Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1709-1753.
    2. Monique De Haan & Erik Plug & José Rosero, 2014. "Birth Order and Human Capital Development: Evidence from Ecuador," Journal of Human Resources, University of Wisconsin Press, vol. 49(2), pages 359-392.
    3. Orazio P. Attanasio & Veruska Oppedisano & Marcos Vera-Hernández, 2015. "Should Cash Transfers Be Conditional? Conditionality, Preventive Care, and Health Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 35-52, April.
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    5. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications, The World Bank, number 2597, November.
    6. Charity Moore, "undated". "Assessing Honduras’ CCT Programme PRAF, Programa de Asignación Familiar: Expected and Unexpected Realities," Research Report 15, International Policy Centre for Inclusive Growth.
    7. Adato, Michelle & Hoddinott, John (ed.), 2010. "Conditional Cash Transfers in Latin America," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-8018-9498-5, Spring.
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    Cited by:

    1. Catalina Amuedo-Dorantes & Jean Kimmel, 2005. "“The Motherhood Wage Gap for Women in the United States: The Importance of College and Fertility Delay”," Review of Economics of the Household, Springer, vol. 3(1), pages 17-48, September.
    2. Bauchet, Jonathan & Undurraga, Eduardo A. & Reyes-García, Victoria & Behrman, Jere R. & Godoy, Ricardo A., 2018. "Conditional cash transfers for primary education: Which children are left out?," World Development, Elsevier, vol. 105(C), pages 1-12.
    3. David K. Evans & Anna Popova, 2017. "Cash Transfers and Temptation Goods," Economic Development and Cultural Change, University of Chicago Press, vol. 65(2), pages 189-221.
    4. Molina Millán, Teresa & Macours, Karen & Maluccio, John A. & Tejerina, Luis, 2020. "Experimental long-term effects of early-childhood and school-age exposure to a conditional cash transfer program," Journal of Development Economics, Elsevier, vol. 143(C).
    5. Erten, Bilge & Keskin, Pinar, 2019. "Compulsory schooling for whom? The role of gender, poverty, and religiosity," Economics of Education Review, Elsevier, vol. 72(C), pages 187-203.
    6. Dany Bahar, 2009. "Aid and Fertility," CID Working Papers 38, Center for International Development at Harvard University.
    7. Sebastian Galiani & Nadya Hajj & Patrick J. McEwan & Pablo Ibarrarán & Nandita Krishnaswamy, 2019. "Voter Response to Peak and End Transfers: Evidence from a Conditional Cash Transfer Experiment," American Economic Journal: Economic Policy, American Economic Association, vol. 11(3), pages 232-260, August.
    8. Ham, Andrés & Michelson, Hope C., 2018. "Does the form of delivering incentives in conditional cash transfers matter over a decade later?," Journal of Development Economics, Elsevier, vol. 134(C), pages 96-108.

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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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