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Child Care Provision: Semiparametric Evidence from a Randomized Experiment in Mexico

  • Dubois, Pierre
  • Rubio-Codina, Marta

We estimate the impact of the Mexican conditional cash transfer program, Progresa, on the time mothers and older sisters spend taking care of children younger than 3. We exploit the random allocation of the program and heterogeneity in household composition for identification, and apply the methodology in Lewbel [2000]. We find that mothers in treatment households substitute their first teenage daughter in the provision of child care. As a result, daughters devote more time to schooling and less time to taking care of their younger siblings. Overall, total household hours to child care increase. These findings indicate that Progresa not only fosters human capital accumulation through keeping teenage girls in school but also through more and arguably better (mother provided) child care.

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Paper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 09-016.

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Date of creation: Apr 2010
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Publication status: Published in Annales d'Économie et de Statistique, n°105-106, Institut national de la statistique et des études économiques, Paris, juin 2012, p.�155-184.
Handle: RePEc:tse:wpaper:21935
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  1. 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.
  2. James J. Heckman & Dimitriy V. Masterov, 2007. "The Productivity Argument for Investing in Young Children ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 446-493.
  3. Karen Macours & Norbert Schady & Renos Vakis, 2011. "Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood: Evidence from a Randomized Experiment," Working Papers 2011-007, Human Capital and Economic Opportunity Working Group.
  4. Anne Case & Christina Paxson, 2000. "Mothers and Others: Who Invests in Children’s Health?," Working Papers 277, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  5. Arthur Lewbel, 1999. "Semiparametric Qualitative Response Model Estimation with Unknown Heteroskedasticity or Instrumental Variables," Boston College Working Papers in Economics 454, Boston College Department of Economics.
  6. James Heckman & Pedro Carneiro, 2003. "Human Capital Policy," NBER Working Papers 9495, National Bureau of Economic Research, Inc.
  7. Garces, E. & Thomas, D. & Currie, J., 2000. "Longer Term Effects of Head Start," Papers 00-20, RAND - Labor and Population Program.
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  9. Christina Paxson & Norbert Schady, 2005. "Cognitive Development Among Young Children in Ecuador: The Roles of Wealth, Health and Parenting," Working Papers 239, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  10. Heckman, James J, 1974. "Effects of Child-Care Programs on Women's Work Effort," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S136-S163, Part II, .
  11. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June.
  12. Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Discussion Papers in Economics at the University of Washington 91-08, Department of Economics at the University of Washington.
  13. Skoufias, Emmanuel & Davis, Benjamin & de la Vega, Sergio, 2001. "Targeting the Poor in Mexico: An Evaluation of the Selection of Households into PROGRESA," World Development, Elsevier, vol. 29(10), pages 1769-1784, October.
  14. Averett, S.L. & Peters, H.E. & Waldman, D.M., 1992. "Tax Credits, Labor Supply, and Child Care," University of Chicago - Economics Research Center 92-9, Chicago - Economics Research Center.
  15. Shakeeb Khan & Elie Tamer, 2010. "Irregular Identification, Support Conditions, and Inverse Weight Estimation," Econometrica, Econometric Society, vol. 78(6), pages 2021-2042, November.
  16. Magnac, Thierry & Maurin, Eric, 2003. "Identification and Information in Monotone Binary Models," IDEI Working Papers 180, Institut d'Économie Industrielle (IDEI), Toulouse, revised Oct 2004.
  17. Khan, Shakeeb & Tamer, Elie, 2009. "Inference on endogenously censored regression models using conditional moment inequalities," Journal of Econometrics, Elsevier, vol. 152(2), pages 104-119, October.
  18. Mueller, Eva, 1984. "The value and allocation of time in rural Botswana," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 329-360.
  19. James J. Heckrnan, 1974. "Effects of Child-Care Programs on Women's Work Effort," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 491-524 National Bureau of Economic Research, Inc.
  20. Janet Currie, 2001. "Early Childhood Education Programs," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 213-238, Spring.
  21. Behrman, Jere R. & Deolalikar, Anil B., 1988. "Health and nutrition," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 14, pages 631-711 Elsevier.
  22. Skoufias, Emmanuel, 2005. "PROGRESA and its impacts on the welfare of rural households in Mexico:," Research reports 139, International Food Policy Research Institute (IFPRI).
  23. Paxson, Christina & Schady, Norbert, 2007. "Does money matter ? The effects of cash transfers on child health and development in rural Ecuador," Policy Research Working Paper Series 4226, The World Bank.
  24. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  25. Blau, David M & Robins, Philip K, 1988. "Child-Care Costs and Family Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 374-81, August.
  26. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  27. 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, 04.
  28. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug..
  29. Charles Michalopoulos & Philip K. Robins & Irwin Garfinkel, 1992. "A Structural Model of Labor Supply and Child Care Demand," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 166-203.
  30. Arthur Lewbel, 2005. "Simple Endogenous Binary Choice and Selection Panel Model Estimators," Boston College Working Papers in Economics 613, Boston College Department of Economics, revised 04 Sep 2006.
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