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Building Dreams: the Impact of a Conditional Cash Transfer Program on Educational Aspirations in Colombia

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  • Sandra García
  • Arturo Harker
  • Jorge Cuartas

Abstract

This paper analyzes the impact of a large scale conditional cash transfer (CCT) program on the educational aspirations of parents and children in poor households. The program, in addition to providing cash subsidies to the poorest households, delivered information about the returns to education and encouraged interaction between beneficiaries, social leaders, and professionals. Using data from the quasi-experimental impact evaluation of the program and a difference-in-differences strategy, we find a positive impact for the CCT on educational aspirations for both children and parents. Particularly, parents and children were 10.9 and 20.2 percentage points more likely to aspire to attain post-secondary education due to exposition to the program, respectively. Furthermore, we find that the effect was larger for the most vulnerable households: the poorest, least educated, and most pessimistic. Based on the results, we discuss policy implications that could boost long-term educational impacts of similar programs. ***** Este artículo analiza el impacto de un programa de transferencias monetarias condicionadas (CCT, por sus siglas en inglés) en las aspiraciones educativas de padres y ninos en hogares en situación de pobreza. El programa, además de otorgar una transferencia monetaria a los hogares más pobres, entregó información sobre los retornos de la educación y fomentó la interacción entre los beneficiarios con líderes sociales y profesionales. Utilizando información cuasi-experimental de la evaluación de impacto del programa y una estrategia de diferencias-en-diferencias, encontramos que el CCT tuvo un impacto positivo sobre las aspiraciones educativas de padres y ninos. En particular, la exposición al programa incrementó la probabilidad de que padres y ninos aspiraran alcanzar educación universitaria en 10.9 y 20.2 puntos porcentuales respectivamente. Sumado a esto, encontramos que el efecto fue mayor para los hogares más vulnerables: los más pobres, los menos educados y los más pesimistas. Con base en los resultados, discutimos implicaciones de política que pueden incrementar los impactos de largo plazo de programas similares.

Suggested Citation

  • Sandra García & Arturo Harker & Jorge Cuartas, 2016. "Building Dreams: the Impact of a Conditional Cash Transfer Program on Educational Aspirations in Colombia," Documentos de trabajo 17665, Escuela de Gobierno - Universidad de los Andes.
    • Handle: RePEc:col:000547:017665
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    References listed on IDEAS

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    1. Sandra García & Jorge Cuartas, 2017. "With a Little Help from my Friends: the Multiplier Effect of Public Subsidies through Private Support," Documentos de trabajo 17647, Escuela de Gobierno - Universidad de los Andes.
    2. Justin Whetten & Matías Fontenla & Kira Villa, 2019. "Opportunities for higher education: the ten-year effects of conditional cash transfers on upper-secondary and tertiary enrollments," Oxford Development Studies, Taylor & Francis Journals, vol. 47(2), pages 222-237, April.
    3. Jorge Cuartas, 2017. "Neighborhood Crime Undermines Parenting: Violence in the Vicinity of Households as a Predictor of Aggressive Discipline," Documentos de trabajo 17646, Escuela de Gobierno - Universidad de los Andes.
    4. Banker, Sachin & Bhanot, Syon P. & Deshpande, Aishwarya, 2020. "Poverty identity and preference for challenge: Evidence from the U.S. and India," Journal of Economic Psychology, Elsevier, vol. 76(C).

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