The influence of conditional cash transfers on eligible children and their siblings

Abstract

Conditional cash transfers (CCTs) are used to reduce poverty while incentivizing investments in children. Targeting CCTs to certain groups of children can improve efficiency, but positive effects on eligible children may be offset by reductions in investments for ineligible siblings. Using data from Nicaragua, we estimate program effects on eligible children and older siblings who aged out of eligibility. We find that CCTs had the largest effects on eligible children, but older brothers also benefited through increased schooling and fewer hours worked. These results suggest that income effects of CCTs apply to both eligible and ineligible children.

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