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Turning a Shove into a Nudge? A "Labeled Cash Transfer" for Education

Author

Listed:
  • Najy Benhassine
  • Florencia Devoto
  • Esther Duflo
  • Pascaline Dupas
  • Victor Pouliquen

Abstract

Conditional Cash Transfers (CCTs) have been shown to increase human capital investments, but their standard features make them expensive. We use a large randomized experiment in Morocco to estimate an alternative government-run program, a "labeled cash transfer" (LCT): a small cash transfer made to fathers of school-aged children in poor rural communities, not conditional on school attendance but explicitly labeled as an education support program. We document large gains in school participation. Adding conditionality and targeting mothers make almost no difference. The program increased parents' belief that education was a worthwhile investment, a likely pathway for the results.

Suggested Citation

  • Najy Benhassine & Florencia Devoto & Esther Duflo & Pascaline Dupas & Victor Pouliquen, 2013. "Turning a Shove into a Nudge? A "Labeled Cash Transfer" for Education," NBER Working Papers 19227, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:19227
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    References listed on IDEAS

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    1. Caldes, Natalia & Coady, David & Maluccio, John A., 2006. "The cost of poverty alleviation transfer programs: A comparative analysis of three programs in Latin America," World Development, Elsevier, vol. 34(5), pages 818-837, May.
    2. Deon Filmer & Norbert Schady, 2008. "Getting Girls into School: Evidence from a Scholarship Program in Cambodia," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 581-617.
    3. Vivi Alatas & Abhijit Banerjee & Rema Hanna & Benjamin A. Olken & Julia Tobias, 2012. "Targeting the Poor: Evidence from a Field Experiment in Indonesia," American Economic Review, American Economic Association, vol. 102(4), pages 1206-1240, June.
    4. Juan Saavedra & Sandra Garcia, 2012. "Impacts of Conditional Cash Transfer Programs on Educational Outcomes in Developing Countries A Meta-analysis," Working Papers WR-921-1, RAND Corporation.
    5. Felipe Barrera-Osorio & Marianne Bertrand & Leigh L. Linden & Francisco Perez-Calle, 2011. "Improving the Design of Conditional Transfer Programs: Evidence from a Randomized Education Experiment in Colombia," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 167-195, April.
    6. Sarah Baird & Craig McIntosh & Berk Özler, 2011. "Cash or Condition? Evidence from a Cash Transfer Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1709-1753.
    7. Akresh, Richard & de Walque, Damien & Kazianga, Harounan, 2013. "Cash transfers and child schooling : evidence from a randomized evaluation of the role of conditionality," Policy Research Working Paper Series 6340, The World Bank.
    8. Saavedra, Juan Esteban & Garcia, Sandra, 2012. "Impacts of Conditional Cash Transfer Programs on Educational Outcomes in Developing Countries: A Meta-analysis," Working Papers 921-1, RAND Corporation.
    9. Robert Jensen, 2012. "Do Labor Market Opportunities Affect Young Women's Work and Family Decisions? Experimental Evidence from India," The Quarterly Journal of Economics, Oxford University Press, vol. 127(2), pages 753-792.
    10. Rema Hanna & Vivi Alatas & Abhijit Banerjee & Benjamin A. Olken & Ririn Purnamasari & Matthew Wai-Poi & Christian Daude, 2012. "Ordeal Mechanisms in Targeting: Theory and Evidence from a Field Experiment in Indonesia," CID Working Papers 254, Center for International Development at Harvard University.
    11. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, Oxford University Press, vol. 125(2), pages 515-548.
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    Citations

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    Cited by:

    1. Teresa Molina-Millan & Tania Barham & Karen Macours & John A. Maluccio & Marco Stampini, 2016. "Long-term Impacts of Conditional Cash Transfers in Latin America: Review of the Evidence," IDB Publications (Working Papers) 7891, Inter-American Development Bank.
    2. Ringdal, Charlotte & Sjursen, Ingrid Hoem, 2017. "Household bargaining and spending on children: Experimental evidence from Tanzania," Discussion Paper Series in Economics 19/2017, Norwegian School of Economics, Department of Economics.
    3. Bergolo, Marcelo & Galván, Estefanía, 2018. "Intra-household Behavioral Responses to Cash Transfer Programs. Evidence from a Regression Discontinuity Design," World Development, Elsevier, vol. 103(C), pages 100-118.
    4. Karlan, Dean & Osman, Adam & Zinman, Jonathan, 2016. "Follow the money not the cash: Comparing methods for identifying consumption and investment responses to a liquidity shock," Journal of Development Economics, Elsevier, vol. 121(C), pages 11-23.
    5. Brollo, Fernanda & Kaufmann, Katja Maria & Ferrara, Eliana La, 2017. "Learning about the Enforcement of Conditional Welfare Programs: Evidence from Brazil," CAGE Online Working Paper Series 317, Competitive Advantage in the Global Economy (CAGE).
    6. repec:eee:ecoedu:v:59:y:2017:i:c:p:63-80 is not listed on IDEAS
    7. Brigitte C. Madrian, 2014. "Applying Insights from Behavioral Economics to Policy Design," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 663-688, August.
    8. repec:eee:wdevel:v:99:y:2017:i:c:p:498-517 is not listed on IDEAS
    9. repec:eee:wdevel:v:105:y:2018:i:c:p:1-12 is not listed on IDEAS
    10. repec:eee:jhecon:v:58:y:2018:i:c:p:176-187 is not listed on IDEAS
    11. de Brauw, Alan, 2014. "Gender, control, and crop choice in northern Mozambique:," IFPRI discussion papers 1333, International Food Policy Research Institute (IFPRI).
    12. Sudarshan, Anant, 2017. "Nudges in the marketplace: The response of household electricity consumption to information and monetary incentives," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 320-335.
    13. Teresa Molina-Millan & Tania Barham & Karen Macours & John A. Maluccio & Marco Stampini, 2016. "Long-term Impacts of Conditional Cash Transfers in Latin America: Review of the Evidence," IDB Publications (Working Papers) 96136, Inter-American Development Bank.
    14. Reynolds, Sarah Anne, 2015. "Brazil's Bolsa Familia: Does it work for adolescents and do they work less for it?," Economics of Education Review, Elsevier, vol. 46(C), pages 23-38.
    15. repec:eee:wdevel:v:98:y:2017:i:c:p:310-324 is not listed on IDEAS

    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • 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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