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Conditional Cash Transfers
Conditional Cash Transfer (CCT) programs aim to reduce poverty by making welfare programs conditional upon the receivers' actions. That is, the government only transfers the money to persons who meet certain criteria. These criteria may include enrolling children into public schools, getting regular check-ups at the doctor's office, receiving vaccinations, or the like. They have been hailed as a way of reducing inequality and helping households break out of a vicious cycle whereby poverty is transmitted from one generation to another. Do these and other claims make sense? Are they supported by the available empirical evidence? This volume seeks to answer these and other related questions. Sp...
Does Money Matter?
Fathers are taking an increasingly involved role in parenting. Most previous research has focused on education and household income in relation to which parent stays at home to take care of children, but the impact of wealth on fathers' child caretaking time investment has not been thoroughly considered. Prior research has not considered the child caretaking time of parents who remain engaged with the workforce. The purpose of this study is to examine the impact of wealth and class on father child caretaking time. Results show that household wealth is not significantly associated with father caretaking time. However, when wealth and father's educational attainment levels both increase, father caretaking time also increases. Conversely, father caretaking time also increases when fathers have lower educational attainment paired with debt. It appears that wealth and class do make a difference, but only if there is congruence between wealth/debt and educational attainment.
Are Cash Transfers Made to Women Spent Like Other Sources of Income?
How cash transfers made to women are used has important implications for models of household behavior and for the design of social programs. In this paper, the authors use the randomized introduction of an unconditional cash transfer to poor women in rural Ecuador to analyze the effect of transfers on the food Engel curve. There are two main findings. First, the authors show that households randomly assigned to receive Bono de Desarrollo Humano (BDH) transfers have a significantly higher food share in expenditures than those that were randomly assigned to the control group. Second, they show that the rising food share among BDH beneficiaries is found among households that have both adult mal...
Collapse and Recovery
Worldwide, the COVID-19 pandemic has been an enormous shock to mortality, economies, and daily life. But what has received insufficient attention is the impact of the pandemic on the accumulation of human capital—the health, education, and skills—of young people. How large was the setback, and how far are we still from a recovery? Collapse and Recovery estimates the impacts of the pandemic on the human capital of young children, school-age children, and youth and discusses the urgent actions needed to reverse the damage. It shows that there was a collapse of human capital and that, unless that collapse is remedied, it is a time bomb for countries. Specifically, the report documents alarm...
Cash Transfers, Conditions, School Enrollment, and Child Work
"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.."--World Bank web site.
Does Money Matter?
The authors examine how a government-run cash transfer program targeted to poor mothers in rural Ecuador influenced the health and development of their children. This program is of particular interest because, unlike other transfer programs that have been implemented recently in Latin America, receipt of the cash transfers was not conditioned on specific parental actions, such as taking children to health clinics or sending them to school. This feature of the program makes it possible to assess whether conditionality is necessary for programs to have beneficial effects on children. The authors use random assignment at the parish level to identify the program's effects. They find that the cas...
The (positive) Effect of Macroeconomic Crises on the Schooling and Employment Decisions of Children in a Middle-income Country
Under some conditions macroeconomic crises can have a positive effect on the accumulation of human capital because they reduce the opportunity cost of schooling. This has profound implications for the design of appropriate social protection policies.
Picking the Poor
Geographic targeting of social programs to the poor has become increasingly important in Peru. The potential payoffs of such targeting are large, and differences in outcomes with different targeting indicators are small.
Convexity and Sheepskin Effects in the Human Capital Earnings Function
Data on education in the Philippines show that there are large differences in the private rate of return to education by level: the wage premia associated with an additional year of schooling are about twice as large at the university level as they are at the primary school level. In addition, there are large "sheepskin effects." Completion of the last year of schooling within a given level is rewarded disproportionately, particularly for university graduates.
