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Cash Transfer Programs and Household Labor Supply

Author

Listed:
  • Del Boca, Daniela

    (University of Turin)

  • Pronzato, Chiara D.

    (University of Turin)

  • Sorrenti, Giuseppe

    (University of Amsterdam)

Abstract

Employment helps reduce the risk of poverty. Through a randomized controlled trial, we evaluate the impact of a conditional cash transfer (CCT) program to low-income families with dependent children on household members' labor supply. Recipients are required to attend labor-market-oriented mentoring courses as a condition of the transfer. One year after admission to the program, fathers assigned to the CCT program are more likely to work (+14 percent) than fathers assigned to an unconditional cash transfer program or to a pure control group. No effect arises for mothers. Results seem to be explained by improved family networks and increased parental investments in activities that enhance labor market opportunities.

Suggested Citation

  • Del Boca, Daniela & Pronzato, Chiara D. & Sorrenti, Giuseppe, 2020. "Cash Transfer Programs and Household Labor Supply," IZA Discussion Papers 13102, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp13102
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    1. Cash Transfer Programs and Household Labor Supply
      by maximorossi in NEP-LTV blog on 2020-06-02 16:33:27

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    More about this item

    Keywords

    household labor supply; poverty; conditional cash transfers; mentoring courses;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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