Cash Transfer Programs and Household Labor Supply

35 Pages Posted: 6 Apr 2020

See all articles by Daniela Del Boca

Daniela Del Boca

University of Turin

Chiara Pronzato

University of Essex - Institute for Social and Economic Research (ISER)

Giuseppe Sorrenti

University of Zurich

Abstract

Employment helps reduce the risk of poverty. Through a randomized controlled trial, we evaluate the impact of a conditional cash transfer (CCT) program to low-income families with dependent children on household members' labor supply. Recipients are required to attend labor-market-oriented mentoring courses as a condition of the transfer. One year after admission to the program, fathers assigned to the CCT program are more likely to work (+14 percent) than fathers assigned to an unconditional cash transfer program or to a pure control group. No effect arises for mothers. Results seem to be explained by improved family networks and increased parental investments in activities that enhance labor market opportunities.

Keywords: conditional cash transfers, poverty, household labor supply, mentoring courses

JEL Classification: I10, I20, J24, I31

Suggested Citation

Del Boca, Daniela and Pronzato, Chiara and Sorrenti, Giuseppe, Cash Transfer Programs and Household Labor Supply. IZA Discussion Paper No. 13102, Available at SSRN: https://ssrn.com/abstract=3568307

Daniela Del Boca (Contact Author)

University of Turin ( email )

Via Po 53
Torino, 10100
Italy

Chiara Pronzato

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Giuseppe Sorrenti

University of Zurich ( email )

Rämistrasse 71
Zürich, CH-8006
Switzerland

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
2
Abstract Views
33
PlumX Metrics