IDEAS home Printed from https://ideas.repec.org/p/fao/wpaper/0210.html
   My bibliography  Save this paper

Conditionality and the Impact of Programme Design on Household welfare: Comparing two diverse cash transfer programmes in rural Mexico

Author

Listed:
  • Benjamin Davis

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Sudhanshu Handa
  • Marta Ruiz-Arranz
  • Marco Stampini
  • Paul Winters

Abstract

In this paper, we examine how the design of cash transfer schemes influences household welfare outcomes with particular reference to the influence of transfers on conditioned outcomes, such as schooling, health and investment. We do this by examining two innovative cash transfer schemes initiated by the Mexican government in the last decade: PROGRESA, which is a national antipoverty scheme directed at chronic rural poverty, and PROCAMPO, which is a scheme designed to compensate farmers for the negative price effects of NAFTA. The schemes differ in that PROGRESA is targeted at women and conditioned on schooling and health outcomes and PROCAMPO is generally targeted at men and conditioned on land use. The analysis of data collected for an evaluation of PROGRESA suggest that the overall effects of the programs, as measured by total and food consumption expenditure, are not different. However, PROGRESA leads to greater schooling expenditure and school attendance as well as increased health outcomes. On the other hand, PROCAMPO is found to lead to increased investment in agriculture. The results suggest that conditionality may have little effect in terms of short-term welfare outcomes, but do influence both longer-term (human capital) and medium term (productive) investment. Policy makers must consider both whether or not conditions should be placed on a program, and the type of condition, depending on what they perceive to be the desirables outcomes of the transfer scheme.

Suggested Citation

  • Benjamin Davis & Sudhanshu Handa & Marta Ruiz-Arranz & Marco Stampini & Paul Winters, 2002. "Conditionality and the Impact of Programme Design on Household welfare: Comparing two diverse cash transfer programmes in rural Mexico," Working Papers 02-10, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    • Handle: RePEc:fao:wpaper:0210
    as

    Download full text from publisher

    File URL: ftp://ftp.fao.org/docrep/fao/007/ae029e/ae029e00.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Esther Duflo, 2003. "Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa," The World Bank Economic Review, World Bank, vol. 17(1), pages 1-25, June.
    2. Quisumbing, Agnes R. & Maluccio, John A., 2000. "Intrahousehold allocation and gender relations," FCND discussion papers 84, International Food Policy Research Institute (IFPRI).
    3. Alderman, Harold & Garcia, Marito, 1994. "Food Security and Health Security: Explaining the Levels of Nutritional Status in Pakistan," Economic Development and Cultural Change, University of Chicago Press, vol. 42(3), pages 485-507, April.
    4. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    5. Howard S. Bloom, 1984. "Estimating the Effect of Job-Training Programs, Using Longitudinal Data: Ashenfelter's Findings Reconsidered," Journal of Human Resources, University of Wisconsin Press, vol. 19(4), pages 544-556.
    6. Handa, Sudhanshu, 1996. "Expenditure behavior and children's welfare: An analysis of female headed households in Jamaica," Journal of Development Economics, Elsevier, vol. 50(1), pages 165-187, June.
    7. Wodon, Quentin, 2001. "Government Programs and Poverty," MPRA Paper 12308, University Library of Munich, Germany.
    8. Sadoulet, Elisabeth & Janvry, Alain de & Davis, Benjamin, 2001. "Cash Transfer Programs with Income Multipliers: PROCAMPO in Mexico," World Development, Elsevier, vol. 29(6), pages 1043-1056, June.
    9. Marta Ruiz-Arranz & Benjamin Davis & Marco Stampini & Paul Winters & Sudhanshu Handa, 2002. "More Calories or More Diversity? An econometric evaluation of the impact of the PROGRESA and PROCAMPO transfer programmes on food security in rural Mexico," Working Papers 02-09, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    10. Beard, Nick & Swinbank, Alan, 2001. "Decoupled payments to facilitate CAP reform," Food Policy, Elsevier, vol. 26(2), pages 121-145, April.
    11. Skoufias, Emmanuel & Davis, Benjamin & de la Vega, Sergio, 2001. "Targeting the Poor in Mexico: An Evaluation of the Selection of Households into PROGRESA," World Development, Elsevier, vol. 29(10), pages 1769-1784, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kostas Stamoulis & Alberto Zezza, 2003. "A Conceptual Framework for National Agricultural, Rural Development, and Food Security Strategies and Policies," Working Papers 03-17, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Marta Ruiz-Arranz & Benjamin Davis & Marco Stampini & Paul Winters & Sudhanshu Handa, 2002. "More Calories or More Diversity? An econometric evaluation of the impact of the PROGRESA and PROCAMPO transfer programmes on food security in rural Mexico," Working Papers 02-09, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    3. World Bank, 2004. "Mexico : Public Expenditure Review, Volume 2. Main Report," World Bank Publications - Reports 15660, The World Bank Group.
    4. Salti, Nisreen & Chaaban, Jad & Moussa, Wael & Irani, Alexandra & Al Mokdad, Rima & Jamaluddine, Zeina & Ghattas, Hala, 2022. "The impact of cash transfers on Syrian refugees in Lebanon: Evidence from a multidimensional regression discontinuity design," Journal of Development Economics, Elsevier, vol. 155(C).
    5. Sudhanshu Handa & Benjamin Davis, 2006. "The Experience of Conditional Cash Transfers in Latin America and the Caribbean," Working Papers 06-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    6. Bouillon, César P. & Tejerina, Luis, 2006. "Do We Know What Works?: A Systematic Review of Impact Evaluations of Social Programs in Latin America and the Caribbean," IDB Publications (Working Papers) 2801, Inter-American Development Bank.
    7. Antonio Yunez-Naude & Fernando Barceinas Paredes, 2004. "The Agriculture of Mexico After Ten Years of Nafta Implementation," Working Papers Central Bank of Chile 277, Central Bank of Chile.
    8. Denni Tommasi & Alexander Wolf, 2016. "Overcoming Weak Identification in the Estimation of Household Resource Shares," Working Papers ECARES ECARES 2016-12, ULB -- Universite Libre de Bruxelles.
    9. Ryan Nehring & Ana Carla Miranda & Andrew Howe, 2017. "A case for institutional demand as effective social protection: supporting smallholders through procurement and food assistance programmes," Working Papers 157, International Policy Centre for Inclusive Growth.
    10. Amanda Glassman & Jessica Todd, 2007. "Performance-Based Incentives for Health: Conditional Cash Transfer Programs in Latin America and the Caribbean," Working Papers 120, Center for Global Development.
    11. Sarah Baird & Francisco H. G. Ferreira & Berk Özler & Michael Woolcock, 2013. "Relative Effectiveness of Conditional and Unconditional Cash Transfers for Schooling Outcomes in Developing Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 9(1), pages 1-124.
    12. Carlos Felipe Jaramillo & Daniel Lederman & Maurizio Bussolo & David Gould & Andrew Mason, 2006. "Challenges of CAFTA : Maximizing the Benefits for Central America," World Bank Publications - Books, The World Bank Group, number 7127, December.
    13. Juan Esteban Saavedra & Sandra Garcia, 2012. "Impacts of Conditional Cash Transfer Programs on Educational Outcomes in Developing Countries A Meta-analysis," Working Papers WR-921-1, RAND Corporation.
    14. Debosree Banerjee & Stephan Klasen, 2022. "Conditional cash transfers to mothers, intrahousehold allocations: the role of unobservability," International Journal of Economic Policy Studies, Springer, vol. 16(1), pages 275-296, February.
    15. Lilik Sugiharti, 2017. "Education Performance and the Determinants of Secondary School Enrolment in Indonesia," GATR Journals gjbssr477, Global Academy of Training and Research (GATR) Enterprise.
    16. Marie Gaarder & Amanda Glassman & Jessica Todd, 2010. "Conditional cash transfers and health: unpacking the causal chain," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 2(1), pages 6-50.
    17. Cesar Martinelli & Susan W. Parker, 2003. "Do School Subsidies Promote Human Capital Accumulation among the Poor?," Working Papers 0306, Centro de Investigacion Economica, ITAM.
    18. César P. Bouillon & Luis Tejerina, 2006. "Do We Know What Works?: A Systematic Review of Impact Evaluations of Social Programs in Latin America and the Caribbean," IDB Publications (Working Papers) 80443, Inter-American Development Bank.
    19. Yi, Fujin & Sun, Dingqiang, 2014. "Grain Subsidy, Liquidity Constraints and Food security—Impact of the Grain Subsidy Program on the Grain-Sown Areas in China," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169779, Agricultural and Applied Economics Association.
    20. Armando Barrientos & Jocelyn DeJong, 2006. "Reducing Child Poverty with Cash Transfers: A Sure Thing?," Development Policy Review, Overseas Development Institute, vol. 24(5), pages 537-552, September.
    21. Ma, Zhao & Bauchet, Jonathan & Steele, Diana & Godoy, Ricardo & Radel, Claudia & Zanotti, Laura, 2017. "Comparison of Direct Transfers for Human Capital Development and Environmental Conservation," World Development, Elsevier, vol. 99(C), pages 498-517.
    22. Saavedra, Juan Esteban & Garcia, Sandra, 2012. "Impacts of Conditional Cash Transfer Programs on Educational Outcomes in Developing Countries: A Meta-analysis," Working Papers 921-1, RAND Corporation.
    23. Anne Esser & Charlotte Bilo & Raquel Tebaldi, 2019. "How can cash transfer programmes work for women and children? A review of gender- and child-sensitive design features," Working Papers 178, International Policy Centre for Inclusive Growth.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marta Ruiz-Arranz & Benjamin Davis & Marco Stampini & Paul Winters & Sudhanshu Handa, 2002. "More Calories or More Diversity? An econometric evaluation of the impact of the PROGRESA and PROCAMPO transfer programmes on food security in rural Mexico," Working Papers 02-09, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Davis, Benjamin & Handa, Sudhanshu & Stampini, Marco & Winters, Paul C., 2002. "The Lure of Tequila and the Bestowing of Motherly Love: Does it Matter Whether Public Cash Transfers are Given to Women or Men? Evidence from the PROGRESA and PROCAMPO Programs in Rural Mexico," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24836, European Association of Agricultural Economists.
    3. Guy Stecklov & Paul Winters & Marco Stampini & Benjamin Davis, 2003. "Can Public Transfers Reduce Mexican Migration? A study based on randomized experimental data," Working Papers 03-16, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    4. Skoufias, Emmanuel, 1998. "Determinants of child health during the economic transition in Romania," World Development, Elsevier, vol. 26(11), pages 2045-2056, November.
    5. Paul J. Gertler & Sebastian W. Martinez & Marta Rubio-Codina, 2012. "Investing Cash Transfers to Raise Long-Term Living Standards," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 164-192, January.
    6. Ashwini Sebastian & Ana Paula de la O Campos & Silvio Daidone & Benjamin Davis & Ousmane Niang & Luca Pellerano, 2016. "Gender differences in child investment behaviour among agricultural households: Evidence from the Lesotho Child Grants Programme," WIDER Working Paper Series wp-2016-107, World Institute for Development Economic Research (UNU-WIDER).
    7. Behrman, Jere R. & Skoufias, Emmanuel, 2004. "Correlates and determinants of child anthropometrics in Latin America: background and overview of the symposium," Economics & Human Biology, Elsevier, vol. 2(3), pages 335-351, December.
    8. Michael Lokshin & Sergiy Radyakin, 2012. "Month of Birth and Children’s Health in India," Journal of Human Resources, University of Wisconsin Press, vol. 47(1), pages 174-203.
    9. Noemi Pace & Silvio Daidone & Benjamin Davis & Luca Pellerano, 2016. "Does "soft conditionality" increase the impact of cash transfers on desired outcomes? Evidence from a randomized control trial in Lesotho," Working Papers 2016:33, Department of Economics, University of Venice "Ca' Foscari".
    10. World Bank, 2009. "Gender in Bolivian Production : Reducing Differences in Formality and Productivity of Firms," World Bank Publications - Books, The World Bank Group, number 2669, December.
    11. Ashwini Sebastian & Ana Paula de la O Campos & Silvio Daidone & Noemi Pace & Benjamin Davis & Ousmane Niang & Luca Pellerano, 2019. "Cash Transfers and Gender Differentials in Child Schooling and Labor: Evidence from the Lesotho Child Grants Programme," Population and Development Review, The Population Council, Inc., vol. 45(S1), pages 181-208, December.
    12. Cesar Martinelli & Susan W. Parker, 2003. "Do School Subsidies Promote Human Capital Accumulation among the Poor?," Working Papers 0306, Centro de Investigacion Economica, ITAM.
    13. David Magaña-Lemus & Ariun Ishdorj & C. Parr Rosson & Jorge Lara-Álvarez, 2016. "Determinants of household food insecurity in Mexico," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-20, December.
    14. Saeed, Muhammad Kashif & Hayat, Muhammad Azmat, 2020. "The Impact of Social Cash Transfers on Poverty in Pakistan-A Case Study of Benazir Income Support Programme," MPRA Paper 99805, University Library of Munich, Germany.
    15. Achyuta Adhvaryu & Teresa Molina & Anant Nyshadham & Jorge Tamayo, 2023. "Helping Children Catch Up: Early Life Shocks and the PROGRESA Experiment," The Economic Journal, Royal Economic Society, vol. 134(657), pages 1-22.
    16. Nidhiya Menon & Yana van der Meulen Rodgers, 2010. "Gender Differences in Socioeconomic Status and Health: Evidence from the 2008 Vietnam Household Living Standard Survey," Working Papers 18, Brandeis University, Department of Economics and International Business School.
    17. Baffes, John & De Gorter, Harry, 2005. "Disciplining agricultural support through decoupling," Policy Research Working Paper Series 3533, The World Bank.
    18. Armando Barrientos & Rachel Sabatés-Wheeler, 2009. "Do transfers generate local economy effects?," Global Development Institute Working Paper Series 10609, GDI, The University of Manchester.
    19. Ashwini Sebastian & Ana Paula de la O Campos & Silvio Daidone & Benjamin Davis & Ousmane Niang & Luca Pellerano, 2016. "Gender differences in child investment behaviour among agricultural households: Evidence from the Lesotho Child Grants Programme," WIDER Working Paper Series 107, World Institute for Development Economic Research (UNU-WIDER).
    20. Noray, Savannah & Janzen, Sarah A., 2017. "Household Migration and Expenditure Decisions," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258539, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fao:wpaper:0210. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gustavo Anríquez (email available below). General contact details of provider: https://edirc.repec.org/data/faoooit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.