Cash Transfers, Conditions, School Enrollment, and Child Work: Evidence from a Randomized Experiment in Ecuador

32 Pages Posted: 20 Apr 2016

See all articles by Maria Caridad Araujo

Maria Caridad Araujo

Inter-American Development Bank (IDB)

Norbert Schady

World Bank - Development Research Group

Date Written: June 1, 2006

Abstract

The impact of cash transfer programs on the accumulation of human capital is a topic of great policy importance. An attendant question is whether program effects are larger when transfers are "conditioned" on certain behaviors, such as a requirement that households enroll their children in school. This paper uses a randomized study design to analyze the impact of the Bono de Desarrollo Humano (BDH), a cash transfer program, on enrollment and child work among poor children in Ecuador. There are two main results. First, the BDH program had a large, positive impact on school enrollment, about 10 percentage points, and a large, negative impact on child work, about 17 percentage points. Second, the fact that some households believed that there was a school enrollment requirement attached to the transfers, even though such a requirement was never enforced or monitored in Ecuador, helps explain the magnitude of program effects.

Keywords: Small Area Estimation Poverty Mapping, Primary Education, Land and Real Estate Development, Municipal Housing and Land, Real Estate Development

Suggested Citation

Araujo, Maria Caridad and Schady, Norbert, Cash Transfers, Conditions, School Enrollment, and Child Work: Evidence from a Randomized Experiment in Ecuador (June 1, 2006). World Bank Policy Research Working Paper No. 3930, Available at SSRN: https://ssrn.com/abstract=917501

Maria Caridad Araujo

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

Norbert Schady (Contact Author)

World Bank - Development Research Group ( email )

1818 H Street NW
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/nschady

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