Effect of Monetary Incentives on Institutional Deliveries: Evidence from the Janani Suraksha Yojna in India

Abstract

This paper is the first attempt to rigorously evaluate the short term effects of the 'Janani Suraksha Yojna' (Safe Motherhood Scheme), a nationwide conditional cash transfer program in India, launched in April 2005. Under the scheme, a woman delivering her child in a medical facility is provided monetary rewards.

My difference-in-difference results indicate that in the initial one and a half years of its operation, the scheme did not have any effect on the disparity between the targeted and non- targeted states. In fact, the gap widened in this period, albeit marginally. But beginning from 2007, the targeted states have shown much larger improvements in the institutional deliveries, leading to a dramatic decline in the gap between the targeted and the non-targeted states. I also show that the convergence or differential improvement in access and availability of medical facilities are not driving my results.