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Transfers to Households with Children and Child Development

Author

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  • Del Boca, Daniela

    (University of Turin)

  • Flinn, Christopher

    (New York University)

  • Wiswall, Matthew

    (University of Wisconsin-Madison)

Abstract

In this paper we utilize a model of household investments in the development of children to explore the impact of various transfer policies on the distribution of child outcomes. We develop a cost criterion that can be used to compare the cost effectiveness of unrestricted, restricted, and conditional cash transfer systems, and find that an optimally chosen conditional cash transfer program is the most cost efficient way to attain any given gain in average child quality. We explore several design elements for the conditional cash transfer system and discuss the role of production function uncertainty and measurement error.

Suggested Citation

  • Del Boca, Daniela & Flinn, Christopher & Wiswall, Matthew, 2014. "Transfers to Households with Children and Child Development," IZA Discussion Papers 8393, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8393
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    References listed on IDEAS

    as
    1. Emmanuel Skoufias & Susan Wendy Parker, 2001. "Conditional Cash Transfers and Their Impact on Child Work and Schooling: Evidence from the PROGRESA Program in Mexico," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2001), pages 45-96, August.
    2. Gordon B. Dahl & Lance Lochner, 2012. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," American Economic Review, American Economic Association, vol. 102(5), pages 1927-1956, August.
    3. Cesar Martinelli & Susan W. Parker, 2003. "Should Transfers To Poor Families Be Conditional On School Attendance? A Household Bargaining Perspective," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 523-544, May.
    4. Daniela Del Boca & Christopher Flinn & Matthew Wiswall, 2014. "Household Choices and Child Development," Review of Economic Studies, Oxford University Press, vol. 81(1), pages 137-185.
    5. Fernald, Lia C.H. & Hidrobo, Melissa, 2011. "Effect of Ecuador's cash transfer program (Bono de Desarrollo Humano) on child development in infants and toddlers: A randomized effectiveness trial," Social Science & Medicine, Elsevier, vol. 72(9), pages 1437-1446, May.
    6. Katrine V. Løken & Magne Mogstad & Matthew Wiswall, 2012. "What Linear Estimators Miss: The Effects of Family Income on Child Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 1-35, April.
    7. Rodrigo Pinto & Azeem Shaikh & Adam Yavitz & James Heckman, 2010. "Inference with Imperfect Randomization: The Case of the Perry Preschool Program," 2010 Meeting Papers 1336, Society for Economic Dynamics.
    8. Elizabeth M. Caucutt & Lance Lochner, 2020. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 1065-1147.
    9. Magne Mogstad & Matthew Wiswall, 2009. "How Linear Models Can Mask Non-Linear Causal Relationships. An Application to Family Size and Children's Education," Discussion Papers 586, Statistics Norway, Research Department.
    10. Flavio Cunha & James J. Heckman, 2008. "Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    11. Kenneth I. Wolpin & Petra E. Todd, 2006. "Assessing the Impact of a School Subsidy Program in Mexico: Using a Social Experiment to Validate a Dynamic Behavioral Model of Child Schooling and Fertility," American Economic Review, American Economic Association, vol. 96(5), pages 1384-1417, December.
    12. Skoufias, Emmanuel & Parker, Susan W., 2001. "Conditional cash transfers and their impact on child work and schooling," FCND briefs 123, International Food Policy Research Institute (IFPRI).
    13. Jere R. Behrman & Susan W. Parker & Petra E. Todd & Kenneth I. Wolpin, 2015. "Aligning Learning Incentives of Students and Teachers: Results from a Social Experiment in Mexican High Schools," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 325-364.
    14. 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 237-275, October.
    15. Schady, Norbert & Araujo, Maria Caridad, 2006. "Cash transfers, conditions, school enrollment, and child work : evidence from a randomized experiment in Ecuador," Policy Research Working Paper Series 3930, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Transfers to Households with Children and Child Development
      by maximorossi in NEP-LTV blog on 2014-10-21 16:40:27
    2. Transfers to Households with Children and Child Development
      by maximorossi in NEP-LTV blog on 2016-10-25 18:41:25

    Citations

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    Cited by:

    1. Francesconi, Marco & Heckman, James J., 2016. "Symposium on Child Development and Parental Investment: Introduction," IZA Discussion Papers 9977, Institute of Labor Economics (IZA).
    2. Alessandra Casarico & Alessandro Sommacal, 2018. "Taxation and parental time allocation under different assumptions on altruism," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(1), pages 140-165, February.
    3. Francesconi, Marco & Heckman, James J, 2015. "Symposium on Child Development and Parental Investment: Introduction," Economics Discussion Papers 16868, University of Essex, Department of Economics.
    4. Daniela Del Boca & Chiara Pronzato & Giuseppe Sorrenti, 2020. "Cash Transfer Programs and Household Labor Supply," Carlo Alberto Notebooks 605, Collegio Carlo Alberto.
    5. Emilia Del Bono & Marco Francesconi & Yvonne Kelly & Amanda Sacker, 2016. "Early Maternal Time Investment and Early Child Outcomes," Economic Journal, Royal Economic Society, vol. 126(596), pages 96-135, October.
    6. James J. Heckman & Stefano Mosso, 2014. "The Economics of Human Development and Social Mobility," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 689-733, August.
    7. Chuan, Amanda & List, John & Samek, Anya, 2021. "Do financial incentives aimed at decreasing interhousehold inequality increase intrahousehold inequality?," Journal of Public Economics, Elsevier, vol. 196(C).
    8. Huebener, Mathias & Kuehnle, Daniel & Spiess, C. Katharina, 2019. "Parental leave policies and socio-economic gaps in child development: Evidence from a substantial benefit reform using administrative data," Labour Economics, Elsevier, vol. 61(C).
    9. Katrin Huber, 2015. "Moving to an Earnings-Related Parental Leave System: Do Heterogeneous Effects on Parents Make Some Children Worse Off?," SOEPpapers on Multidisciplinary Panel Data Research 791, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Naoi, Michio & Akabayashi, Hideo & Nakamura, Ryosuke & Nozaki, Kayo & Sano, Shinpei & Senoh, Wataru & Shikishima, Chizuru, 2021. "Causal effects of family income on educational investment and child outcomes: Evidence from a policy reform in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    11. Pierre-André Chiappori & Bernard Salanié & Yoram Weiss, 2017. "Partner Choice, Investment in Children, and the Marital College Premium," American Economic Review, American Economic Association, vol. 107(8), pages 2109-2167, August.
    12. Balmaceda, Felipe, 2021. "A failure of the market for college education and on-the-job human capital," Economics of Education Review, Elsevier, vol. 84(C).
    13. Katja Seidel, 2021. "The transition from School to Post-Secondary Education – What factors affect educational decisions?," Working Paper Series in Economics 398, University of Lüneburg, Institute of Economics.
    14. Mari, Gabriele & Keizer, Renske, 2020. "Families of Austerity: Welfare Cuts and Family Stress in Britain," SocArXiv vdej8, Center for Open Science.
    15. Velilla, Jorge, 2020. "Intergenerational correlation of self-employment in European countries," MPRA Paper 104184, University Library of Munich, Germany.
    16. Hugo Reis, 2020. "Girls' Schooling Choices And Home Production: Evidence From Pakistan," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(2), pages 783-819, May.
    17. Huber, Katrin, 2015. "Moving to an earnings-related parental leave system do heterogeneous effects on parents make some children worse off?," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113044, Verein für Socialpolitik / German Economic Association.
    18. Mitchell, Mark, 2020. "The Development of Health and Human Capital Accumulation," MPRA Paper 103711, University Library of Munich, Germany.
    19. Del Boca, Daniela & Pronzato, Chiara & Sorrenti, Giuseppe, 2021. "Conditional cash transfer programs and household labor supply," European Economic Review, Elsevier, vol. 136(C).
    20. Francesco Agostinelli & Matthew Wiswall, 2016. "Estimating the Technology of Children's Skill Formation," NBER Working Papers 22442, National Bureau of Economic Research, Inc.
    21. Jorge Rodriguez, 2017. "Understanding the Effects of Income and Child Care Subsidies on Children's Academic Achievement," 2017 Papers pro1077, Job Market Papers.
    22. Gimenez-Nadal, J. Ignacio & Molina, José Alberto & Velilla, Jorge, 2020. "Short- vs Long-Term Intergenerational Correlations of Employment and Self-Employment in Europe," IZA Discussion Papers 12933, Institute of Labor Economics (IZA).
    23. Katrin Huber, 2015. "Moving to an earnings-related parental leave system – do heterogeneous effects on parents make some children worse off?," Working Papers 160, Bavarian Graduate Program in Economics (BGPE).
    24. 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.
    25. Mathias Huebener & Daniel Kuehnle & C. Katharina Spiess, 2017. "Paid Parental Leave and Child Development: Evidence from the 2007 German Parental Benefit Reform and Administrative Data," Discussion Papers of DIW Berlin 1651, DIW Berlin, German Institute for Economic Research.

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    More about this item

    Keywords

    income transfers; time allocation; child development; conditional cash transfers;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D1 - Microeconomics - - Household Behavior

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