The Heterogeneous Impact of Conditional Cash Transfers

39 Pages Posted: 22 Sep 2011 Last revised: 7 Apr 2013

See all articles by Sebastian Galiani

Sebastian Galiani

University of Maryland - Department of Economics

Patrick J. McEwan

Wellesley College, Department of Economics

Date Written: April 1, 2013

Abstract

The Honduran PRAF experiment randomly assigned conditional cash transfers to 40 of 70 poor municipalities, within five strata defined by a poverty proxy. Using census data, we show that eligible children were 8 percentage points more likely to enroll in school and 3 percentage points less likely to work. The effects were much larger in the two poorest strata, and statistically insignificant in the other three (the latter finding is robust to the use of a separate regression-discontinuity design). Heterogeneity confirms the importance of judicious targeting to maximize the impact and cost-effectiveness of CCTs. There is no consistent evidence of effects on ineligible children or on adult labor supply.

Keywords: CCT, Heterogenous Effects, Education and Child Labor

JEL Classification: H00

Suggested Citation

Galiani, Sebastian and McEwan, Patrick J., The Heterogeneous Impact of Conditional Cash Transfers (April 1, 2013). Available at SSRN: https://ssrn.com/abstract=1931216 or http://dx.doi.org/10.2139/ssrn.1931216

Sebastian Galiani (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

Patrick J. McEwan

Wellesley College, Department of Economics ( email )

106 Central Street
Wellesley, MA 02481
United States

HOME PAGE: http://www.patrickmcewan.net

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