IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/4226.html
   My bibliography  Save this paper

Does money matter ? The effects of cash transfers on child health and development in rural Ecuador

Author

Listed:
  • Paxson, Christina
  • Schady, Norbert

Abstract

The authors examine how a government-run cash transfer program targeted to poor mothers in rural Ecuador influenced the health and development of their children. This program is of particular interest because, unlike other transfer programs that have been implemented recently in Latin America, receipt of the cash transfers was not conditioned on specific parental actions, such as taking children to health clinics or sending them to school. This feature of the program makes it possible to assess whether conditionality is necessary for programs to have beneficial effects on children. The authors use random assignment at the parish level to identify the program's effects. They find that the cash transfer program had positive effects on the physical, cognitive, and socioemotional development of children, and the treatment effects were substantially larger for the poorer children than for less poor children. Among the poorest children in the sample, those whose mothers were eligible for transfers had outcomes that were on average more than 20 percent of a standard deviation higher than those for comparable children in the control group. Treatment effects are somewhat larger for girls and for children with more highly-educated mothers. The authors examine three mechanisms-better nutrition, greater use of health care, and better parenting-through which the transfers might influence child development. The program appeared to improve children's nutrition and increased the chance they were treated for helminth infections. But children in the treatment group were not more likely to visit health clinics for growth monitoring, and the mental health and parenting of their mothers did not improve.

Suggested Citation

  • 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.
  • Handle: RePEc:wbk:wbrwps:4226
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/05/03/000016406_20070503092958/Rendered/PDF/wps4226.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Abhijit Banerjee & Esther Duflo, 2006. "Addressing Absence," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 117-132, Winter.
    2. Jorge M. Aguero & Michael R. Carter & Ingrid Woolard, 2006. "The Impact of Unconditional Cash Transfers on Nutrition: The South African Child Support Grant," SALDRU Working Papers 8, Southern Africa Labour and Development Research Unit, University of Cape Town.
    3. Jalan, Jyotsna & Ravallion, Martin, 2003. "Does piped water reduce diarrhea for children in rural India?," Journal of Econometrics, Elsevier, vol. 112(1), pages 153-173, January.
    4. 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, August.
    5. Lundberg, S.J. & Pollak, R.A. & Wales, T.J., 1994. "Do Husbands and Wives Pool Their Resources? Evidence from U.K. Child Benefit," Working Papers 94-6, University of Washington, Department of Economics.
    6. Maluccio, John A. & Flores, Rafael, 2004. "Impact evaluation of a conditional cash transfer program," FCND briefs 184, International Food Policy Research Institute (IFPRI).
    7. Abhijit Banerjee & Angus Deaton & Esther Duflo, 2004. "Wealth, Health, and Health Services in Rural Rajasthan," American Economic Review, American Economic Association, vol. 94(2), pages 326-330, May.
    8. Christina Paxson & Norbert Schady, 2007. "Cognitive Development among Young Children in Ecuador: The Roles of Wealth, Health, and Parenting," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
    9. Sonalde Desai & Soumya Alva, 1998. "Maternal education and child health: Is there a strong causal relationship?," Demography, Springer;Population Association of America (PAA), vol. 35(1), pages 71-81, February.
    10. Hanan G. Jacoby, 2002. "Is There an Intrahousehold "Flypaper Effect"? Evidence From a School Feeding Programme," Economic Journal, Royal Economic Society, vol. 112(476), pages 196-221, January.
    11. Donald Robertson & James Symons, 2003. "Do Peer Groups Matter? Peer Group versus Schooling Effects on Academic Attainment," Economica, London School of Economics and Political Science, vol. 70(277), pages 31-53, February.
    12. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nabernegg, Markus, 2012. "El impacto del BDH en el gasto de bienes no deseados: Un análisis de regresión discontinua
      [The impact of the Bono de Desarrollo Humano in the expenditure for undesirable goods: A regression discon
      ," MPRA Paper 41295, University Library of Munich, Germany.
    2. Guisan, M.C. & Aguayo, E., 2007. "Health Expenditure, Poverty and Economic Development in Latin America 2000-2005," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 4(2), pages 5-24.
    3. Karen Macours & Norbert Schady & Renos Vakis, 2012. "Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood: Evidence from a Randomized Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 247-273, April.
    4. Schady, Norbert & Rosero, José, 2008. "Are cash transfers made to women spent like other sources of income?," Economics Letters, Elsevier, vol. 101(3), pages 246-248, December.
    5. Marta Rubio Codina & Pierre Dubois, 2012. "Child Care Provision: Semiparametric Evidence from a Randomized Experiment in Mexico," Annals of Economics and Statistics, GENES, issue 105-106, pages 155-184.
    6. World Bank, 2009. "Guatemala - Poverty assessment : good performance at low levels," World Bank Other Operational Studies 3063, The World Bank.
    7. Gilligan, Daniel O. & Roy, Shalini, 2013. "Resources, stimulation, and cognition: How transfer programs and preschool shape cognitive development in Uganda," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149822, Agricultural and Applied Economics Association.
    8. Richard Akresh & Damien de Walque & Harounan Kazianga, 2014. "Alternative Cash Transfer Delivery Mechanisms: Impacts on Routine Preventative Health Clinic Visits in Burkina Faso," NBER Chapters,in: African Successes, Volume II: Human Capital, pages 113-135 National Bureau of Economic Research, Inc.
    9. Hjelm, Lisa & Handa, Sudhanshu & de Hoop, Jacobus & Palermo, Tia, 2017. "Poverty and perceived stress: Evidence from two unconditional cash transfer programs in Zambia," Social Science & Medicine, Elsevier, vol. 177(C), pages 110-117.
    10. Eric V. Edmonds & Norbert Schady, 2012. "Poverty Alleviation and Child Labor," American Economic Journal: Economic Policy, American Economic Association, vol. 4(4), pages 100-124, November.
    11. Rafael Perez Ribas & Fabio Veras Soares & Clarissa Gondim Teixeira & Elydia Silva & Guilherme Issamu Hirata, 2010. "Beyond Cash: Assessing Externality and Behaviour Effects of Non-Experimental Cash Transfers," Working Papers 65, International Policy Centre for Inclusive Growth.
    12. Marie Gaarder & Amanda Glassman & Jessica Todd, 2010. "Conditional cash transfers and health: unpacking the causal chain," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 2(1), pages 6-50.
    13. Durr-E-Nayab & Shujaat Farooq, 2014. "Effectiveness of Cash Transfer Programmes for Household Welfare in Pakistan: The Case of the Benazir Income Support Programme," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(2), pages 145-174.
    14. Marcelo Arbex & Enlinson Mattos, 2017. "Optimal Paternalistic Health and Human Capital Policies," Working Papers 1709, University of Windsor, Department of Economics.
    15. Agénor, Pierre-Richard & Canuto, Otaviano & da Silva, Luiz Pereira, 2014. "On gender and growth: The role of intergenerational health externalities and women's occupational constraints," Structural Change and Economic Dynamics, Elsevier, vol. 30(C), pages 132-147.
    16. Tania Barham & Karen Macours & John A. Maluccio, 2013. "More Schooling and More Learning?: Effects of a Three-Year Conditional Cash Transfer Program in Nicaragua after 10 Years," IDB Publications (Working Papers) 4584, Inter-American Development Bank.
    17. Declan French, 2012. "Causation between health and income: a need to panic," Empirical Economics, Springer, vol. 42(2), pages 583-601, April.
    18. Tessa Bold & Mwangi Kimenyi & Germano Mwabu & Alice Ng'ang'a & Justin Sandefur, 2013. "Scaling-up What Works: Experimental Evidence on External Validity in Kenyan Education," CSAE Working Paper Series 2013-04, Centre for the Study of African Economies, University of Oxford.
    19. Carrillo, Paul E. & Ponce Jarrín, Juan, 2009. "Efficient delivery of subsidies to the poor: Improving the design of a cash transfer program in Ecuador," Journal of Development Economics, Elsevier, vol. 90(2), pages 276-284, November.
    20. World Bank, 2013. "Expanding and Improving Early Childhood Education in Turkey," World Bank Other Operational Studies 16066, The World Bank.
    21. Pierre-Richard Agénor & Madina Agénor, 2014. "Infrastructure, women’s time allocation, and economic development," Journal of Economics, Springer, vol. 113(1), pages 1-30, September.
    22. Nicola Brandt, 2012. "Reducing Poverty in Chile: Cash Transfers and Better Jobs," OECD Economics Department Working Papers 951, OECD Publishing.
    23. Karen Macours & Norbert Schady & Renos Vakis, 2012. "Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood: Evidence from a Randomized Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 247-273, April.
    24. Kandpal, Eeshani, 2011. "Beyond Average Treatment Effects: Distribution of Child Nutrition Outcomes and Program Placement in India's ICDS," World Development, Elsevier, vol. 39(8), pages 1410-1421, August.
    25. Jenny Aker, 2013. "Scaling Up What Works: Experimental Evidence on External Validity in Kenyan Education," Working Papers 321, Center for Global Development.

    More about this item

    Keywords

    Health Monitoring&Evaluation; Youth and Governance; Street Children; Adolescent Health; Educational Sciences;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4226. 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: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.