Does Supply Matter? Initial Supply Conditions and the Effectiveness of Conditional Cash Transfers for Grade Progression in Nicaragua
We combine administrative and survey data to examine the effect of a conditional cash transfer program on grade progression in Nicaragua from 1999–2003, putting the spotlight on initial supply side conditions and the extent to which they conditioned program effectiveness. Our principal findings are that the program had a substantial effect on grade progression and that these increased over time, even after the original intervention group stopped receiving demand-side transfers. Half of the estimated program effect on progression is accounted for by a reduction in the dropout and repetition rates of beneficiary children who were already in school when the program began. Supply side conditions were important and several of them led to heterogeneous program impacts. The program was more effective in areas with autonomous schools, suggesting flexibility at the school level better enabled schools to respond to changing demand conditions. At the same time, it was also more effective in intervention areas with poor initial supply conditions as measured by indicators of grade availability and distance to school. These were the areas with lower enrollments and grade progression before the program, and thus more room for improvement. With the analysis of child schooling in hand, we then turn to assess the “effect” of the program on school supply conditions. It is precisely in the intervention areas with poor initial school supply conditions, that the program was relatively more effective in improving school supply as measured by grade availability, number of sessions per day and number of teachers. The results suggest that initial school supply conditions do not represent insurmountable obstacles for the implementation of a conditional cash transfer program, as long as these constraints are identified at the planning stage and mechanisms put in place to deal with them during the execution stage. Our results also underscore the importance of carefully considering the integrated (demand and supply) nature of conditional-cash-transfer programs, something often overlooked in the design of these interventions and, particularly, in the impact evaluation literature.
|Date of creation:||Aug 2009|
|Date of revision:|
|Contact details of provider:|| |
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.:
- David P. Coady & Susan W. Parker, 2004. "Cost-effectiveness Analysis of Demand- and Supply-side Education Interventions: the Case of PROGRESA in Mexico," Review of Development Economics, Wiley Blackwell, vol. 8(3), pages 440-451, 08.
- Gitter, Seth R. & Barham, Bradford, 2007.
"Women's Power, Conditional Cash Transfers and Schooling in Nicaragua,"
Staff Paper Series
517, University of Wisconsin, Agricultural and Applied Economics.
- Seth R. Gitter & Bradford L. Barham, 2008. "Women's Power, Conditional Cash Transfers, and Schooling in Nicaragua," World Bank Economic Review, World Bank Group, vol. 22(2), pages 271-290, May.
- Alderman, Harold & Watkins, Susan Cotts & Kohler, Hans-Peter & Maluccio, John A. & Behrman, Jere R., 2000.
"Attrition in longitudinal household survey data,"
FCND discussion papers
96, International Food Policy Research Institute (IFPRI).
- 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.
- Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2004.
"Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey,"
Labor and Demography
- Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2001. "Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 556-592.
- Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2000. "Lost But Not Forgotten: Attrition and Follow-up in the Indonesian Family Life Survey," Working Papers 00-03, RAND Corporation Publications Department.
- Caldes, Natalia & Coady, David & Maluccio, John A., 2006.
"The cost of poverty alleviation transfer programs: A comparative analysis of three programs in Latin America,"
Elsevier, vol. 34(5), pages 818-837, May.
- John Maluccio & Natàlia Caldés & David Coady, 2005. "The Cost of Poverty Alleviation Transfer Programs: A Comparative Analysis of Three Programs in Latin America," Middlebury College Working Paper Series 0527, Middlebury College, Department of Economics.
- Heinrich, Carolyn J., 2007. "Demand and Supply-Side Determinants of Conditional Cash Transfer Program Effectiveness," World Development, Elsevier, vol. 35(1), pages 121-143, January.
- 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.
- T. Paul Schultz, 2001. "School Subsidies for the Poor: Evaluating the Mexican Progresa Poverty Program," Working Papers 834, Economic Growth Center, Yale University.
- Gary Burtless, 1995. "The Case for Randomized Field Trials in Economic and Policy Research," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 63-84, Spring.
- John Maluccio, 2008.
"Household Targeting In Practice: The Nicaraguan Red De Protección Social,"
Middlebury College Working Paper Series
0802, Middlebury College, Department of Economics.
- John A. Maluccio, 2009. "Household targeting in practice: The Nicaraguan Red de Protección Social," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(1), pages 1-23.
- James J. Heckman & Jeffrey A. Smith, 1995. "Assessing the Case for Social Experiments," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 85-110, Spring.
- Handa, Sudhanshu, 2002. "Raising primary school enrolment in developing countries: The relative importance of supply and demand," Journal of Development Economics, Elsevier, vol. 69(1), pages 103-128, October.
When requesting a correction, please mention this item's handle: RePEc:mdl:mdlpap:0908. 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: (Vijaya Wunnava)
If references are entirely missing, you can add them using this form.