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The Power of Lakshmi: Monetary Incentives for Raising a Girl

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  • Nabaneeta Biswas
  • Christopher Cornwell
  • Laura V. Zimmermann

Abstract

Worldwide, 1.6 million girls are “missing” at birth every year. One policy tool to improve the sex ratio is a conditional cash transfer that pays parents to invest in daughters, but existing evidence on their effectiveness is sparse. Using a difference-in-differences framework, we evaluate the Dhanlakshmi scheme, an Indian CCT program that strongly encouraged girl births without restricting fertility. Dhanlakshmi improved the sex ratio at birth, with only a small fertility increase. The girl-birth effect was concentrated among the first two parities and partially persisted after the program was discontinued. Post-birth outcomes like immunization and education also improved.

Suggested Citation

  • Nabaneeta Biswas & Christopher Cornwell & Laura V. Zimmermann, 2025. "The Power of Lakshmi: Monetary Incentives for Raising a Girl," Journal of Human Resources, University of Wisconsin Press, vol. 60(4), pages 1253-1283.
    • Handle: RePEc:uwp:jhriss:v:60:y:2025:i:4:p:1253-1283
    Note: DOI: https://doi.org/10.3368/jhr.1021-11963R2
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    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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