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Intra-household Behavioral Responses to Cash Transfer Programs. Evidence from a Regression Discontinuity Design

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  • Marcelo Bergolo

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a)

  • Estefaní­a Galván

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a)

Abstract

This paper investigates the behavioral responses of coupled men and women to a cash transfer program in Uruguay –Asignaciones Familiares-Plan de Equidad (AFAM-PE)-, by analyzing its effect on labor market responses, marital dissolution, and the decision-making process regarding the use of money. The identification strategy exploits both the fact that the monetary transfer is targeted to women and a local random assignment into the AFAM-PE which exogenously changed the intra-household distribution of resources across applicant households. Based on a regression discontinuity design and on a follow-up survey matched with administrative records of applicant households to the program, the insights of this study may be summarized in four broad results. First, while no significant effects are found for men, the program has significant negative effects on the formality choice of women at the eligibility cutoff, but no robust effect on the margin of employment. Secondly, these responses seem to be associated with a decline in women's movement into formal labor from unregistered jobs. These responses do not depend on their partnerŽs labor supply. Third, contrary to findings for various welfare programs in developed countries, no effect on marital dissolution is found. Fourth, we find suggestive evidence that the AFAM-PE results in women taking greater (perceived) responsibility for decisions in specific spheres of household expenditures. In conclusion, considering the overall effects, these results suggest that conditional cash transfer programs (CCTs) do not necessary imply an increase in women's control over household resources, offering suggestive considerations for the ongoing debate in developing countries and suggesting the need to discuss new designs for social assistance.

Suggested Citation

  • Marcelo Bergolo & Estefaní­a Galván, 2016. "Intra-household Behavioral Responses to Cash Transfer Programs. Evidence from a Regression Discontinuity Design," Documentos de Trabajo (working papers) 16-06, Instituto de Economía - IECON.
  • Handle: RePEc:ulr:wpaper:dt-06-16
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    6. Cecilia Parada, 2023. "Cash Transfers and Intra-Household Decision-Making in Uruguay," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 757-775, September.
    7. Bergolo, M. & Cruces, G., 2021. "The anatomy of behavioral responses to social assistance when informal employment is high," Journal of Public Economics, Elsevier, vol. 193(C).
    8. Sefa Awaworyi Churchill & Nasir Iqbal & Saima Nawaz & Siew Ling Yew, 2024. "Do unconditional cash transfers increase fertility? Lessons from a large‐scale program," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 74-96, January.
    9. Sahay, Abhilasha & Dervišević, Ervin & Perova, Elizaveta, 2023. "Conditional cash transfers and violence against women – Does the type of violence matter?," Social Science & Medicine, Elsevier, vol. 333(C).
    10. Nawaz, Saima & Iqbal, Nasir, 2020. "The impact of unconditional cash transfer on fuel choices among ultra-poor in Pakistan: Quasi-experimental evidence from the Benazir Income Support Program," Energy Policy, Elsevier, vol. 142(C).
    11. Rodríguez Torres, Omar, 2022. "The productive role of social policy," MERIT Working Papers 2022-010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Parada, Cecilia, 2024. "Fertility responses to cash transfers in Uruguay," World Development Perspectives, Elsevier, vol. 33(C).
    13. Luis Laguinge, 2020. "Protección social y participación laboral: impacto de la extensión del régimen de asignaciones familiares en Argentina en 2016," Asociación Argentina de Economía Política: Working Papers 4363, Asociación Argentina de Economía Política.
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    17. Chong, Zhi Zheng & Lau, Siew Yee, 2023. "A Systematic Review and Meta-Analysis of the Educational Effects of Unconditional Cash Transfers," MPRA Paper 113587, University Library of Munich, Germany.
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    Keywords

    conditional cash transfer program; intra-household allocations; labor market behavior; womenŽs decision-making;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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