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The impact of cash transfers on school enrollment : evidence from Ecuador

Author

Listed:
  • Oosterbeek, Hessel
  • Ponce, Juan
  • Schady, Norbert

Abstract

This paper presents evidence about the impact on school enrollment of a program in Ecuador that gives cash transfers to the 40 percent poorest families. The evaluation design consists of a randomized experiment for families around the first quintile of the poverty index and of a regression discontinuity design for families around the second quintile of this index, which is the program's eligibility threshold. This allows us to compare results from two different credible identification methods, and to investigate whether the impact varies with families'poverty level. Around the first quintile of the poverty index the impact is positive while it is equal to zero around the second quintile. This suggests that for the poorest families the program lifts a credit constraint while this is not the case for families close to the eligibility threshold.

Suggested Citation

  • Oosterbeek, Hessel & Ponce, Juan & Schady, Norbert, 2008. "The impact of cash transfers on school enrollment : evidence from Ecuador," Policy Research Working Paper Series 4645, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4645
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    References listed on IDEAS

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    1. Angrist, Joshua D., 1997. "Conditional independence in sample selection models," Economics Letters, Elsevier, vol. 54(2), pages 103-112, February.
    2. Vos, R.P. & Ponce, J., 2004. "Meeting the millennium development goal in education : a cost-effectiveness analysis for Ecuador," ISS Working Papers - General Series 19162, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    3. Orazio Attanasio & Emla Fitzsimons & Ana Gómez & Martha Isabel Gutiérrez & Costas Meghir & Alice Mesnard, 2006. "Child education and work choices in the presence of a conditional cash transfer programme in rural Colombia," IFS Working Papers W06/13, Institute for Fiscal Studies.
    4. 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.
    5. Rawlings, Laura B.*Rubio, Gloria M., 2003. "Evaluating the impact of conditional cash transfer programs : lessons from Latin America," Policy Research Working Paper Series 3119, The World Bank.
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    Citations

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    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. Jose Rosero & Hessel Oosterbeek, 2011. "Trade-offs between Different Early Childhood Interventions: Evidence from Ecuador," Tinbergen Institute Discussion Papers 11-102/3, Tinbergen Institute.
    3. Ponce, Juan & Bedi, Arjun S., 2010. "The impact of a cash transfer program on cognitive achievement: The Bono de Desarrollo Humano of Ecuador," Economics of Education Review, Elsevier, vol. 29(1), pages 116-125, February.
    4. Ryan Nehring, 2012. "Social Protection in Ecuador: A New Vision for Inclusive Growth," Policy Research Brief 28, International Policy Centre for Inclusive Growth.
    5. Barrientos, Armando & Nino-Zarazua, Miguel, 2010. "Social Assistance in Developing Countries Database Version 5.0," MPRA Paper 20001, University Library of Munich, Germany.
    6. Hidalgo, Diana & Onofa, Mercedes & Oosterbeek, Hessel & Ponce, Juan, 2013. "Can provision of free school uniforms harm attendance? Evidence from Ecuador," Journal of Development Economics, Elsevier, vol. 103(C), pages 43-51.
    7. M. Caridad Araujo & Mariano Bosch & Norbert Schady, 2017. "Can Cash Transfers Help Households Escape an Inter-Generational Poverty Trap?," NBER Chapters,in: The Economics of Asset Accumulation and Poverty Traps National Bureau of Economic Research, Inc.
    8. Elke Schaffland, 2011. "Conditional Cash Transfers in Brazil: Treatment Evaluation of the “Bolsa Família” Program on Education," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 84, Courant Research Centre PEG, revised 11 Apr 2012.
    9. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications, The World Bank, number 2597, April.
    10. M. Caridad Araujo & Mariano Bosch & Norbert Schady, 2017. "Can Cash Transfers Help Households Escape an Inter-Generational Poverty Trap?," NBER Chapters,in: The Economics of Poverty Traps National Bureau of Economic Research, Inc.
    11. Maria Heracleous & Mario González & Paul Winters, 2016. "Conditional Cash Transfers and Schooling Decisions: Evidence from Urban Mexico," IDB Publications (Working Papers) 95639, Inter-American Development Bank.
    12. Galiani, Sebastian & McEwan, Patrick J., 2013. "The heterogeneous impact of conditional cash transfers," Journal of Public Economics, Elsevier, vol. 103(C), pages 85-96.

    More about this item

    Keywords

    Rural Poverty Reduction; Access to Finance; Health Systems Development&Reform; Poverty Reduction Strategies; Primary Education;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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