Cash Transfers for School-Age Children in African Countries: Simulation of Impacts on Poverty and School Attendance

17 Pages Posted: 17 Aug 2006

See all articles by Nanak Kakwani

Nanak Kakwani

International Poverty Centre

Fabio Soares

International Poverty Centre

Hyun H. Son

Asian Development Bank

Abstract

Drawing on data from 15 African countries, simulation models suggest that to reduce the poverty headcount ratio by increasing incomes among poor households, cash transfers would have to be sizeable - in the range of 2-8% of GDP. Even then, an increase in income, by itself, would not suffice to increase school attendance significantly. Higher impacts at lower cost could be achieved by making transfers targeted and conditional. However, the administrative costs of detailed targeting (e.g. by income) are known to be high. On the other hand, some broad measures, such as targeting rural children only, produce results almost as good as income-linked targeting and, given their low administrative costs, are to be preferred.

Suggested Citation

Kakwani, Nanak and Soares, Fabio and Son, Hyun H., Cash Transfers for School-Age Children in African Countries: Simulation of Impacts on Poverty and School Attendance. Development Policy Review, Vol. 24, No. 5, pp. 553-569, September 2006. Available at SSRN: https://ssrn.com/abstract=925061 or http://dx.doi.org/10.1111/j.1467-7679.2006.00347.x

Nanak Kakwani (Contact Author)

International Poverty Centre ( email )

SBS- Ed.BNDES, 10° andar
70.076-900- Brasilia-DF
Brazil
+ 55 61 2105 5000 (Phone)
+ 55 61 2105 5001 (Fax)

Fabio Soares

International Poverty Centre ( email )

SBS- Ed.BNDES, 10° andar
70.076-900- Brasilia-DF
Brazil

Hyun H. Son

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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