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The Coffee Crisis, Early Childhood Development, and Conditional Cash Transfers

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  • Seth R. Gitter
  • James Manley
  • Bradford Barham

Abstract

This paper examines the efficacy of three conditional cash transfer (CCT) programs in Honduras, Mexico, and Nicaragua in mitigating the potential negative effects of an income shock caused by falling prices of coffee, an important cash crop to many CCT participants. A theoretical household model is developed that demonstrates both the positive potential of CCTs to mitigate negative shocks effects on early childhood development and the negative potential of CCTs to exacerbate the impacts of a negative shock to early childhood development if the conditionality encourages households to shift resources from younger to older children to sustain their school attendance. The experimental design includes both CCT and non-CCT households and communities with and without coffee production. The paper finds that in Mexico the CCT mitigated the negative shock on child height-for-age z-scores, while in Nicaragua coffeeproducing households who participated in CCTs saw greater declines in z-scores. Findings for Honduras are largely inconclusive.

Suggested Citation

  • Seth R. Gitter & James Manley & Bradford Barham, 2011. "The Coffee Crisis, Early Childhood Development, and Conditional Cash Transfers," Research Department Publications 4715, Inter-American Development Bank, Research Department.
  • Handle: RePEc:idb:wpaper:4715
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    References listed on IDEAS

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    1. Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
    2. 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, August.
    3. Christina Paxson & Norbert Schady, 2005. "Child Health and Economic Crisis in Peru," World Bank Economic Review, World Bank Group, vol. 19(2), pages 203-223.
    4. 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).
    5. Ferreira, Francisco H. G. & Schady, Norbert, 2008. "Aggregate economic shocks, child schooling and child health," Policy Research Working Paper Series 4701, The World Bank.
    6. Marta Rubio Codina & Pierre Dubois, 2012. "Child Care Provision: Semiparametric Evidence from a Randomized Experiment in Mexico," Annals of Economics and Statistics, GENES, issue 105-106, pages 155-184.
    7. Maluccio, John A., 2005. "Coping with the “coffee crisis” in Central America: The Role of the Nicaraguan Red de Protección Social," FCND discussion papers 188, International Food Policy Research Institute (IFPRI).
    8. 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, April.
    9. Ana C. Dammert, 2009. "Heterogeneous Impacts of Conditional Cash Transfers: Evidence from Nicaragua," Economic Development and Cultural Change, University of Chicago Press, vol. 58(1), pages 53-83, October.
    10. Laura B. Rawlings, 2005. "Evaluating the Impact of Conditional Cash Transfer Programs," World Bank Research Observer, World Bank Group, vol. 20(1), pages 29-55.
    11. 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, pages 164-192.
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    Cited by:

    1. Margaret Grosh & Maurizio Bussolo & Samuel Freije, 2014. "Understanding the Poverty Impact of the Global Financial Crisis in Latin America and the Caribbean," World Bank Publications, The World Bank, number 18727.
    2. Manley, James & Gitter, Seth & Slavchevska, Vanya, 2013. "How Effective are Cash Transfers at Improving Nutritional Status?," World Development, Elsevier, vol. 48(C), pages 133-155.
    3. Independent Evaluation Group, 2014. "Social Safety Nets and Gender : Learning from Impact Evaluations and World Bank Projects," World Bank Publications, The World Bank, number 21365.
    4. Seth R. Gitter & James Manley & Vanya Slavchevska, 2010. "How Effective are Cash Transfer Programs at Improving Nutritional Status?," Working Papers 2010-18, Towson University, Department of Economics, revised Dec 2012.
    5. Fitzsimons, Emla & Mesnard, Alice, 2012. "How children’s schooling and work is affected when their father leaves permanently: Evidence from Colombia," CEPR Discussion Papers 8886, C.E.P.R. Discussion Papers.
    6. Emla Fitzsimons & Alice Mesnard, 2012. "How children's schooling and work are affected when their father leaves permanently: evidence from Colombia," IFS Working Papers W12/04, Institute for Fiscal Studies.

    More about this item

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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