Do Conditional Cash Transfers for Schooling Generate Lasting Benefits?

Jere Richard Behrman · Susan Wendy Parker · Petra Todd

178 citations0/0 files storedThe Journal of Human Resources

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Poverty, Education, and Child Welfare School Choice and Performance Gender, Labor, and Family Dynamics

Abstract

Conditional cash transfer (CCT) programs link public transfers to human capital investment in hopes of alleviating current poverty and reducing its intergenerational transmission. However, little is known about their long-term impacts. This paper evaluates longer-run impacts on schooling and work of the best-known CCT program, Mexico’s PROGRESA/Oportunidades, using experimental and nonexperimental estimators based on groups with different program exposure. The results show positive impacts on schooling, reductions in work for younger youth (consistent with postponing labor force entry), increases in work for older girls, and shifts from agricultural to nonagricultural employment. The evidence suggests schooling effects are robust with time.

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References

2011Handbook of The Economics of Education 2001Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment 2007Remedying Education: Evidence from Two Randomized Experiments in India 2004School subsidies for the poor: evaluating the Mexican Progresa poverty program 1998Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males 1994Estimates of the Economic Returns to Schooling from a New Sample of Twins 2011New Structural Economics: A Framework for Rethinking Development 2000Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy

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