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Can Conditional Cash Transfers Serve as Safety Nets to Keep Children at School and Out of the Labor Market?

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  • de Janvry, Alain
  • Finan, Frederico
  • Sadoulet, Elisabeth

Abstract

Conditional cash transfer (CCT) programs for education are known to be effective in increasing educational achievements among the rural poor. Using panel data from the Progresa experience with randomized treatment, we show that there is strong state dependence in school attendance. Short term shocks that take children out of school will consequently have long term consequences on their educational achievements. We show that idiosyncratic and covariate shocks do indeed push parents to take children out of school and to use child labor as risk coping instruments. However, CCT help protect children from these shocks, creating an additional benefit from these programs as effective safety nets with long term benefits.

Suggested Citation

  • de Janvry, Alain & Finan, Frederico & Sadoulet, Elisabeth, 2004. "Can Conditional Cash Transfers Serve as Safety Nets to Keep Children at School and Out of the Labor Market?," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt5fp0g5p2, Department of Agricultural & Resource Economics, UC Berkeley.
  • Handle: RePEc:cdl:agrebk:qt5fp0g5p2
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    References listed on IDEAS

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    1. Lorenzo Guarcello & Fabrizia Mealli & Furio Rosati, 2010. "Household vulnerability and child labor: the effect of shocks, credit rationing, and insurance," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 169-198, January.
    2. Duryea, Suzanne & Lam, David & Levison, Deborah, 2007. "Effects of economic shocks on children's employment and schooling in Brazil," Journal of Development Economics, Elsevier, vol. 84(1), pages 188-214, September.
    3. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
    4. Canals-Cerda, Jose & Ridao-Cano, Cristobal, 2004. "The dynamics of school and work in rural Bangladesh," Policy Research Working Paper Series 3330, The World Bank.
    5. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
    6. Reardon, Thomas & Matlon, Peter & Delgado, Christopher, 1988. "Coping with household-level food insecurity in drought-affected areas of Burkina Faso," World Development, Elsevier, vol. 16(9), pages 1065-1074, September.
    7. Skoufias, Emmanuel & Parker, Susan W., 2001. "Conditional cash transfers and their impact on child work and schooling," FCND briefs 123, International Food Policy Research Institute (IFPRI).
    8. Eric V. Edmonds, 2004. "Does Illiquidity Alter Child Labor and Schooling Decisions? Evidence from Household Responses to Anticipated Cash Transfers in South Africa," NBER Working Papers 10265, National Bureau of Economic Research, Inc.
    9. Funkhouser, Edward, 1999. "Cyclical economic conditions and school attendance in Costa Rica," Economics of Education Review, Elsevier, vol. 18(1), pages 31-50, February.
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    Cited by:

    1. Gitter, Seth R. & Barham, Bradford L., 2007. "Credit, Natural Disasters, Coffee, and Educational Attainment in Rural Honduras," World Development, Elsevier, vol. 35(3), pages 498-511, March.
    2. Jishnu Das & Stefan Dercon & James Habyarimana & Pramila Krishnan, 2007. "Teacher Shocks and Student Learning: Evidence from Zambia," Journal of Human Resources, University of Wisconsin Press, vol. 42(4).

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