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The Heterogeneous Impact of Conditional Cash Transfers

  • Sebastian Galiani

    (University of Maryland)

  • Patrick J. McEwan

    (Wellesley College)

The Honduran PRAF experiment randomly assigned conditional cash transfers to 40 of 70 poor municipalities, within five strata defined by a poverty proxy. Using census data, we show that eligible children were 8 percentage points more likely to enroll in school and 3 percentage points less likely to work. The effects were much larger in the two poorest strata, and statistically insignificant in the other three (the latter finding is robust to the use of a separate regression-discontinuity design). Heterogeneity confirms the importance of judicious targeting to maximize the impact and cost-effectiveness of CCTs. There is no consistent evidence of effects on ineligible children or on adult labor supply.

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File URL: http://cedlas.econo.unlp.edu.ar/archivos_upload/doc_cedlas149.pdf
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Paper provided by CEDLAS, Universidad Nacional de La Plata in its series CEDLAS, Working Papers with number 0149.

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Length: 40 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:dls:wpaper:0149
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  1. Jere R. Behrman & Susan W. Parker & Petra E. Todd, 2011. "Do Conditional Cash Transfers for Schooling Generate Lasting Benefits?: A Five-Year Followup of PROGRESA/Oportunidades," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 93-122.
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  3. John Maluccio & Alexis Murphy & Ferdinando Regalia, 2010. "Does supply matter? Initial schooling conditions and the effectiveness of conditional cash transfers for grade progression in Nicaragua," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 2(1), pages 87-116.
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  7. Charity Moore, 2008. "Assessing Honduras? CCT Programme PRAF, Programa de Asignación Familiar: Expected and Unexpected Realities," Country Study 15, International Policy Centre for Inclusive Growth.
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  9. 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, April.
  10. Angelucci, Manuela & De Giorgi, Giacomo & Rangel, Marcos A. & Rasul, Imran, 2009. "Family Networks and School Enrolment: Evidence from a Randomized Social Experiment," IZA Discussion Papers 4497, Institute for the Study of Labor (IZA).
  11. Eric V. Edmonds & Norbert Schady, 2009. "Poverty Alleviation and Child Labor," NBER Working Papers 15345, National Bureau of Economic Research, Inc.
  12. Hessel Oosterbeek & Juan Ponce & Norbert Schady, 2008. "The Impact of Cash Transfers on School Enrollment: Evidence from Ecuador," Tinbergen Institute Discussion Papers 08-037/3, Tinbergen Institute.
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  17. Felipe Barrera-Osorio & Marianne Bertrand & Leigh L. Linden & Francisco Perez-Calle, 2011. "Improving the Design of Conditional Transfer Programs: Evidence from a Randomized Education Experiment in Colombia," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 167-95, April.
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  19. Jere R. Behrman & Susan W. Parker & Petra E. Todd, 2005. "Long-Term Impacts of the Oportunidades Conditional Cash Transfer Program on Rural Youth in Mexico," Ibero America Institute for Econ. Research (IAI) Discussion Papers 122, Ibero-America Institute for Economic Research.
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  24. Emmanuel Skoufias & Susan Wendy Parker, 2001. "Conditional Cash Transfers and Their Impact on Child Work and Schooling: Evidence from the PROGRESA Program in Mexico," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Fall 2001), pages 45-96, August.
  25. Gustavo J. Bobonis & Frederico Finan, 2009. "Neighborhood Peer Effects in Secondary School Enrollment Decisions," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 695-716, November.
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