Cash Transfers, Conditions, School Enrollment, And Child Work : Evidence From A Randomized Experiment In Ecuador

Norbert Schady · María Caridad Araujo

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Poverty, Education, and Child Welfare Gender, Labor, and Family Dynamics Child Nutrition and Water Access

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.

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References

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2009Improving Education in the Developing World: What Have We Learned from Randomized Evaluations?2011Conditional Cash Transfer Programmes: The Recent Experience in Latin America and the Caribbean 2018Measuring and changing control: women's empowerment and targeted transfers 2011Effect of Ecuador’s cash transfer program (Bono de Desarrollo Humano) on child development in infants and toddlers: A randomized effectiveness trial

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