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Own and sibling effects of conditional cash transfer programs : theory and evidence from Cambodia

Author

Listed:
  • Ferreira, Francisco H. G.
  • Filmer, Deon
  • Schady, Norbert

Abstract

Conditional cash transfers have been adopted by a large number of countries in the past decade. Although the impacts of these programs have been studied extensively, understanding of the economic mechanisms through which cash and conditions affect household decisions remains incomplete. This paper uses evidence from a program in Cambodia, where eligibility varied substantially among siblings in the same household, to illustrate these effects. A model of schooling decisions highlights three different effects of a child-specific conditional cash transfer: an income effect, a substitution effect, and a displacement effect. The model predicts that such a conditional cash transfer will increase enrollment for eligible children - due to all three effects - but have an ambiguous effect on ineligible siblings. The ambiguity arises from the interaction of a positive income effect with a negative displacement effect. These predictions are shown to be consistent with evidence from Cambodia, where the child-specific program makes modest transfers, conditional on school enrollment for children of middle-school age. Scholarship recipients were more than 20 percentage points more likely to be enrolled in school and 10 percentage points less likely to work for pay. However, the school enrollment and work of ineligible siblings was largely unaffected by the program.

Suggested Citation

  • Ferreira, Francisco H. G. & Filmer, Deon & Schady, Norbert, 2009. "Own and sibling effects of conditional cash transfer programs : theory and evidence from Cambodia," Policy Research Working Paper Series 5001, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5001
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    Cited by:

    1. Riddell, Abby & Niño-Zarazúa, Miguel, 2016. "The effectiveness of foreign aid to education," International Journal of Educational Development, Elsevier, vol. 48(C), pages 23-36.
    2. Barrientos, Armando & Nino-Zarazua, Miguel, 2010. "Social Assistance in Developing Countries Database Version 5.0," MPRA Paper 20001, University Library of Munich, Germany.
    3. Alejandro J. Ganimian & Richard J. Murnane, 2014. "Improving Educational Outcomes in Developing Countries: Lessons from Rigorous Impact Evaluations," NBER Working Papers 20284, National Bureau of Economic Research, Inc.
    4. Riddell, Abby Rubin, 2012. "The Effectiveness of Foreign Aid to Education: What Can Be Learned?," WIDER Working Paper Series 075, World Institute for Development Economic Research (UNU-WIDER).
    5. Lindskog, Annika, 2013. "The effect of siblings’ education on school-entry in the Ethiopian highlands," Economics of Education Review, Elsevier, vol. 34(C), pages 45-68.
    6. Kenayathulla, Husaina Banu, 2016. "Gender differences in intra-household educational expenditures in Malaysia," International Journal of Educational Development, Elsevier, vol. 46(C), pages 59-73.
    7. Del Rey, Elena & Estevan, Fernanda, 2013. "Conditional cash transfers and education quality in the presence of credit constraints," Economics of Education Review, Elsevier, vol. 34(C), pages 76-84.
    8. Lindskog, Annika, 2011. "The Effect of Older Siblings’ Literacy on School Entry and Primary School Progress in the Ethiopian Highlands," Working Papers in Economics 495, University of Gothenburg, Department of Economics.
    9. Baez, Javier E. & Camacho, Adriana, 2011. "Assessing the Long-term Effects of Conditional Cash Transfers on Human Capital: Evidence from Colombia," IZA Discussion Papers 5751, Institute for the Study of Labor (IZA).
    10. De Hoop,Jacobus Joost & Friedman,Jed & Kandpal,Eeshani & Rosati,Furio Camillo, 2017. "Child schooling and child work in the presence of a partial education subsidy," Policy Research Working Paper Series 8182, The World Bank.
    11. Jiménez, Maribel. & Jiménez, Mónica., 2015. "Asistencia escolar y participación laboral de los adolescentes en Argentina : el impacto de la Asignación Universal por Hijo," ILO Working Papers 994889043402676, International Labour Organization.
    12. Independent Evaluation Group, 2014. "Social Safety Nets and Gender : Learning from Impact Evaluations and World Bank Projects," World Bank Publications, The World Bank, number 21365, April.
    13. World Bank, 2011. "Work and Family : Latin American and Caribbean Women in Search of a New Balance
      [Trabajo & familia : mujeres de América Latina y el Caribe en busca de un nuevo equilibrio - Resumen ejecuivo (Vol. 2
      ," World Bank Other Operational Studies 12489, The World Bank.
    14. World Bank, 2013. "Republic of Madagascar : Mitigating the Impact of the Crisis on Education," World Bank Other Operational Studies 17012, The World Bank.
    15. World Bank, 2013. "Where Have All the Poor Gone? : Cambodia Poverty Assessment 2013," World Bank Other Operational Studies 17546, The World Bank.
    16. Estevan, Fernanda, 2013. "The impact of conditional cash transfers on public education expenditures: A political economy approach," European Journal of Political Economy, Elsevier, vol. 32(C), pages 268-284.
    17. repec:unu:wpaper:wp2012-75 is not listed on IDEAS

    More about this item

    Keywords

    Access to Finance; Primary Education; Education For All; Tertiary Education; Youth and Governance;

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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