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Does Conditionality Generate Heterogeneity and Regressivity in Program Impacts? The Progresa Experience

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Listed author(s):
  • Campo, Juan Carlos Chavez-Martin del

Abstract

We study both empirically and theoretically the consequences of introducing a conditional cash transfer scheme for the distribution of program impacts. Intuitively, if the conditioned-on good is normal, then better-off households tend to receive a larger positive impact. I formalize this insight by means of a simple model of child labor, applying the Nash-Bargaining approach as the solution concept. A series of tests for heterogeneity in program impacts are developed and applied to Progresa, an anti-poverty program in Mexico. It can be concluded that this program exhibits a lot of heterogeneity in treatment effects. Consistent with the model, and under the assumption of rank preservation, program impacts are distributionally regressive, although positive, within the treated population

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File URL: http://purl.umn.edu/127042
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Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 127042.

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Date of creation: 2006
Handle: RePEc:ags:cudawp:127042
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Keywords: Heterogeneous Program Impacts; Regressivity; Progresa; Conditional Cash Transfers; Nonparametric Methods; Semiparametric Methods.; Research Methods/ Statistical Methods; H430; C140; C210;

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  1. Charles F. Manski, 1997. "Monotone Treatment Response," Econometrica, Econometric Society, vol. 65(6), pages 1311-1334, November.
  2. Cesar Martinelli & Susan W. Parker, 2003. "Should Transfers To Poor Families Be Conditional On School Attendance? A Household Bargaining Perspective," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 523-544, 05.
  3. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  4. Donald W. K. Andrews, 2000. "Inconsistency of the Bootstrap when a Parameter Is on the Boundary of the Parameter Space," Econometrica, Econometric Society, vol. 68(2), pages 399-406, March.
  5. Molinari, Francesca, 2010. "Missing Treatments," Journal of Business & Economic Statistics, American Statistical Association, vol. 28(1), pages 82-95.
  6. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
  7. James J. Heckman & Jeffrey Smith & Nancy Clements, 1997. "Making The Most Out Of Programme Evaluations and Social Experiments: Accounting For Heterogeneity in Programme Impacts," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 487-535.
  8. Lopez-Acevedo, Gladys & Salinas, Angel, 2000. "Marginal willingness to pay for education and the determinants of enrollment in Mexico," Policy Research Working Paper Series 2405, The World Bank.
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Cited by:

  1. Djebbari, Habiba & Smith, Jeffrey, 2008. "Heterogeneous impacts in PROGRESA," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 64-80, July.

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