IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood: Evidence from a Randomized Experiment

  • Karen Macours
  • Norbert Schady
  • Renos Vakis

Cash transfer programs have become extremely popular in the developing world. There is a large literature on the effects of these programs on schooling, health and nutrition, but relatively little is known about possible impacts on child development. This paper analyzes the impact of a cash transfer program on cognitive development in early childhood in rural Nicaragua. Identification is based on random assignment. We show that children in households assigned to receive benefits had significantly higher levels of development nine months after the program began. There is no fadeout of program effects two years after the program had ended and transfers were discontinued. We show that the changes in child development we observe are unlikely to be a result of the cash component of the program alone.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.iadb.org/document.cfm?pubDetail=1&id=36677097
Our checks indicate that this address may not be valid because: 500 Internal Server Error (http://www.iadb.org/document.cfm?pubDetail=1&id=36677097 [301 Moved Permanently]--> http://publications.iadb.org/document.cfm?id=36677097 [302 Found]--> http://publications.iadb.org/bitstream/11319/3834/1/Cash%2520Transfers%252c%2520Behavioral%2520Changes%252c%2520and%2520Cognitive%2520Development%2520in%2520Early%2520Childhood%253a%2520Evidence%2520from%2520a%2520Randomized%2520Experiment.pdf). If this is indeed the case, please notify (Monica Bazan)


Download Restriction: no

Paper provided by Inter-American Development Bank in its series IDB Publications (Working Papers) with number 62638.

as
in new window

Length:
Date of creation: Feb 2012
Date of revision:
Handle: RePEc:idb:brikps:62638
Contact details of provider: Postal: 1300 New York Avenue, NW, Washington, DC 20577
Phone: 202-623-1000
Web page: http://www.iadb.org/publications/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. John Hoddinott & Lawrence Haddad, 1994. "Does female income share influence household expenditures? Evidence from the Côte d'Ivoire," CSAE Working Paper Series 1994-17, Centre for the Study of African Economies, University of Oxford.
  2. Janet Currie, 2001. "Early Childhood Education Programs," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 213-238, Spring.
  3. James J. Heckman & Seong Hyeok Moon & Rodrigo Pinto & Peter A. Savelyev & Adam Yavitz, 2009. "The Rate of Return to the High/Scope Perry Preschool Program," NBER Working Papers 15471, National Bureau of Economic Research, Inc.
  4. Cunha, Flavio & Heckman, James J. & Lochner, Lance John & Masterov, Dimitriy V., 2005. "Interpreting the Evidence on Life Cycle Skill Formation," IZA Discussion Papers 1675, Institute for the Study of Labor (IZA).
  5. Garces, E. & Thomas, D. & Currie, J., 2000. "Longer Term Effects of Head Start," Papers 00-20, RAND - Labor and Population Program.
  6. Thomas M. Fraker & Alberto P. Martini & James C. Ohls, 1995. "The Effect of Food Stamp Cashout on Food Expenditures: An Assessment of the Findings from Four Demonstrations," Journal of Human Resources, University of Wisconsin Press, vol. 30(4), pages 633-649.
  7. Macours, Karen & Vakis, Renos, 2008. "Seasonal Migration and Early Childhood Development," Working Paper Series RP2008/48, World Institute for Development Economic Research (UNU-WIDER).
  8. Edward Miguel & Michael Kremer & Rebecca Thornton, 2004. "Incentives to learn," Natural Field Experiments 00289, The Field Experiments Website.
  9. Norbert Schady, 2006. "Early Childhood Development in Latin America and the Caribbean," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  10. Mark R. Rosenzweig & Kenneth I. Wolpin, 1994. "Are There Increasing Returns to the Intergenerational Production of Human Capital? Maternal Schooling and Child Intellectual Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 670-693.
  11. John Strauss & Duncan Thomas, 1998. "Health, Nutrition, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 766-817, June.
  12. Knudsen, Eric I. & Heckman, James J. & Cameron, Judy L. & Shonkoff, Jack P., 2006. "Economic, Neurobiological and Behavioral Perspectives on Building America's Future Workforce," IZA Discussion Papers 2190, Institute for the Study of Labor (IZA).
  13. Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, vol. 81(2), pages 386-414, December.
  14. Schady, Norbert & Rosero, Jose, 2007. "Are cash transfers made to women spent like other sources of income?," Policy Research Working Paper Series 4282, The World Bank.
  15. Macours, Karen & Vakis, Renos, 2009. "Changing households'investments and aspirations through social interactions : evidence from a randomized transfer program," Policy Research Working Paper Series 5137, The World Bank.
  16. Berlinski, Samuel & Galiani, Sebastian & Manacorda, Marco, 2007. "Giving children a better start : preschool attendance and school-age profiles," Policy Research Working Paper Series 4240, The World Bank.
  17. Jennifer Ward-Batts, 2008. "Out of the Wallet and into the Purse: Using Micro Data to Test Income Pooling," Journal of Human Resources, University of Wisconsin Press, vol. 43(2), pages 325-351.
  18. Macours, Karen & Schady, Norbert & Vakis, Renos, 2008. "Cash transfers, behavioral changes, and cognitive development in early childhood : evidence from a randomized experiment," Policy Research Working Paper Series 4759, The World Bank.
  19. Janet Currie & Duncan Thomas, 1998. "School Quality and the Longer-Term Effects of Head Start," NBER Working Papers 6362, National Bureau of Economic Research, Inc.
  20. Esther Duflo, 2003. "Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa," World Bank Economic Review, World Bank Group, vol. 17(1), pages 1-25, June.
  21. Jere R. Behrman & Yingmei Cheng & Petra E. Todd, 2004. "Evaluating Preschool Programs When Length of Exposure to the Program Varies: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 108-132, February.
  22. Duflo, Esther & Glennerster, Rachel & Kremer, Michael, 2007. "Using Randomization in Development Economics Research: A Toolkit," CEPR Discussion Papers 6059, C.E.P.R. Discussion Papers.
  23. Janet Currie & Duncan Thomas, 1999. "Early Test Scores, Socioeconomic Status and Future Outcomes," NBER Working Papers 6943, National Bureau of Economic Research, Inc.
  24. Mahnaz Islam & John Hoddinott, 2009. "Evidence of Intrahousehold Flypaper Effects from a Nutrition Intervention in Rural Guatemala," Economic Development and Cultural Change, University of Chicago Press, vol. 57(2), pages 215-238, 01.
  25. Anne Case & Christina Paxson, 2008. "Stature and Status: Height, Ability, and Labor Market Outcomes," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 499-532, 06.
  26. Hilary W. Hoynes & Diane Schanzenbach, 2007. "Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program," NBER Working Papers 13025, National Bureau of Economic Research, Inc.
  27. Hanan G. Jacoby, 2002. "Is There an Intrahousehold "Flypaper Effect"? Evidence From a School Feeding Programme," Economic Journal, Royal Economic Society, vol. 112(476), pages 196-221, January.
  28. Maluccio, John A. & Flores, Rafael, 2005. "Impact evaluation of a conditional cash transfer program: the Nicaraguan Red de Protección Social," Research reports 141, International Food Policy Research Institute (IFPRI).
  29. Kremer, Michael Robert & Miguel, Edward A. & Thorton, Rebecca L, 2004. "Incentives to Learn," Center for International and Development Economics Research, Working Paper Series qt9kc4p47q, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
  30. Christina Paxson & Norbert Schady, 2005. "Cognitive Development Among Young Children in Ecuador: The Roles of Wealth, Health and Parenting," Working Papers 239, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  31. Jorge M. Aguero & Michael R. Carter & Ingrid Woolard, 2006. "The Impact of Unconditional Cash Transfers on Nutrition: The South African Child Support Grant," SALDRU Working Papers 8, Southern Africa Labour and Development Research Unit, University of Cape Town.
  32. Maluccio, John A. & Flores, Rafael, 2004. "Impact evaluation of a conditional cash transfer program," FCND briefs 184, International Food Policy Research Institute (IFPRI).
  33. Gustavo J. Bobonis & Edward Miguel & Charu Puri-Sharma, 2006. "Anemia and School Participation," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
  34. Jere R. Behrman & John Hoddinott, 2005. "Programme Evaluation with Unobserved Heterogeneity and Selective Implementation: The Mexican "PROGRESA" Impact on Child Nutrition," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(4), pages 547-569, 08.
  35. Behrman, Jere R & Sengupta, Piyali & Todd, Petra, 2005. "Progressing through PROGRESA: An Impact Assessment of a School Subsidy Experiment in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 237-75, October.
  36. Norbert Schady & Maria Caridad Araujo, 2008. "Cash Transfers, Conditions, and School enrollment in Ecuador," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  37. Francine D. Blau & Adam J. Grossberg, 1990. "Maternal Labor Supply and Children's Cognitive Development," NBER Working Papers 3536, National Bureau of Economic Research, Inc.
  38. 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.
  39. Shelly J. Lundberg & Robert A. Pollak & Terence J. Wales, 1997. "Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 463-480.
  40. Armecin, Graeme & Behrman, Jere R. & Duazo, Paulita & Ghuman, Sharon & Gultiano, Socorro & King, Elizabeth M. & Lee, Nannette, 2006. "Early childhood development through an integrated program : evidence from the Philippines," Policy Research Working Paper Series 3922, The World Bank.
  41. Jeffrey R. Kling & Jeffrey B. Liebman & Lawrence F. Katz, 2005. "Experimental Analysis of Neighborhood Effects," NBER Working Papers 11577, National Bureau of Economic Research, Inc.
  42. Berlinski, Samuel & Galiani, Sebastian & Gertler, Paul, 2009. "The effect of pre-primary education on primary school performance," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 219-234, February.
  43. Hoddinott, John & Haddad, Lawrence, 1995. "Does Female Income Share Influence Household Expenditures? Evidence from Cote d'Ivoire," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 77-96, February.
  44. 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.
  45. John A. Maluccio & John Hoddinott & Jere R. Behrman & Reynaldo Martorell & Agnes R. Quisumbing & Aryeh D. Stein, 2009. "The Impact of Improving Nutrition During Early Childhood on Education among Guatemalan Adults," Economic Journal, Royal Economic Society, vol. 119(537), pages 734-763, 04.
  46. Cheryl Doss, 2006. "The Effects of Intrahousehold Property Ownership on Expenditure Patterns in Ghana," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(1), pages 149-180, March.
  47. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
  48. Paxson, Christina & Schady, Norbert, 2007. "Does money matter ? The effects of cash transfers on child health and development in rural Ecuador," Policy Research Working Paper Series 4226, The World Bank.
  49. Samia Amin & Jishnu Das & Markus Goldstein, 2008. "Are You Being Served? New Tools for Measuring Services Delivery," World Bank Publications, The World Bank, number 6921.
  50. Ghuman, Sharon & Behrman, Jere R & Borja, Judith B & Gultiano, Socorro & King, Elizabeth M, 2005. "Family Background, Service Providers, and Early Childhood Development in the Philippines: Proxies and Interactions," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 129-64, October.
  51. Thomas, D., 1995. "Like Father, Like Son, Like Mother, Like Daughter, Parental Resources and Child Height," Papers 95-01, RAND - Reprint Series.
  52. Peter Kooreman, 2000. "The Labeling Effect of a Child Benefit System," American Economic Review, American Economic Association, vol. 90(3), pages 571-583, June.
  53. Edmonds, Eric, 2002. "Reconsidering the labeling effect for child benefits: evidence from a transition economy," Economics Letters, Elsevier, vol. 76(3), pages 303-309, August.
Full references (including those not matched with items on IDEAS)

When requesting a correction, please mention this item's handle: RePEc:idb:brikps:62638. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Bazan)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.