Biblioteca Digital

The report shows that there is good evidence that conditional cash transfers (CCTs) have improved the lives of poor people. Transfers generally have been well targeted to poor households, have raised consumption levels, and have reduced poverty, by a substantial amount in some countries. Offsetting adjustments that could have blunted the impact of transfers, such as reductions in the labor market participation of beneficiaries, have been relatively modest. Moreover, CCT programs often have provided an entry point to reforming badly targeted subsidies and upgrading the quality of safety nets. The report thus argues that CCTs have been an effective way to redistribute income to the poor, while recognizing that even the best-designed and best-managed program cannot fulfill all of the needs of a comprehensive social protection system. CCTs therefore need to be complemented with other interventions, such as workfare or employment programs and social pensions. The report also considers the rationale for conditioning the transfers on the use of specific health and education services by program beneficiaries. Conditions can be justified if households are under investing in the human capital of their children...

The authors use the unique experimental design of the Food Support Program (Programa Apoyo Alimentario) to analyze in-kind and cash transfers in the poor rural areas of southern states of Mexico. They compare the impacts of monthly in-kind and cash transfers of equivalent value (mean share 11.5 percent of pre-program consumption) on household welfare as measured by food and total consumption, adult labor supply, and poverty. The results show that approximately two years later the transfer has a large and positive impact on total and food consumption. There are no differences in the size of the effect of transfer in cash versus transfers in-kind on consumption. The transfer, irrespective of type, does not affect overall participation in labor market activities but induces beneficiary households to switch their labor allocation from agricultural to nonagricultural activities. The analysis finds that the program leads to a significant reduction in poverty. Overall, the findings suggest that the Food Support Program intervention is able to relax the binding liquidity constraints faced by poor agricultural households...

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 males and females, but not among households that only have adult females. Bargaining power between men and women is likely to be important in mixed-adult households, but not among female-only households, where there are no men to bargain with. Finally, the authors show that within mixed-adult households, program effects are only significant in households in which the initial bargaining capacity of women was likely to be weak. This pattern of results is consistent with an increase in the bargaining power of women in households that received BDH transfers.

Cash transfers can be defined as the provision of assistance in the form of cash to the poor or those who face a probable risk, in the absence of the transfer, of falling into poverty. Cash transfers, broadly defined, can be given in the form of social assistance, insurance, near-cash tax benefits, and private transfers. This note focuses on government programs, recognizing that private transfers and public programs serve multiple objectives, of which social safety net protection is just one.

Objective The authors evaluated the use of conditional cash transfers as an HIV and sexually transmitted infection prevention strategy to incentivise safe sex. Design An unblinded, individually randomised and controlled trial. Setting 10 villages within the Kilombero/Ulanga districts of the Ifakara Health and Demographic Surveillance System in rural south-west Tanzania. Participants The authors enrolled 2399 participants, aged 18–30 years, including adult spouses. Interventions Participants were randomly assigned to either a control arm (n=1124) or one of two intervention arms: low-value conditional cash transfer (eligible for $10 per testing round, n=660) and high-value conditional cash transfer (eligible for $20 per testing round, n=615). The authors tested participants every 4 months over a 12-month period for the presence of common sexually transmitted infections. In the intervention arms, conditional cash transfer payments were tied to negative sexually transmitted infection test results. Anyone testing positive for a sexually transmitted infection was offered free treatment, and all received counselling. Main outcome measures The primary study end point was combined prevalence of the four sexually transmitted infections...

During the past decade, the use of conditional cash transfers to increase investment in human capital has generated considerable excitement in both research and policy forums. Such schemes are being increasingly adopted in a number of contexts and countries to improve outcomes in health, education, and child labor as they aim to balance the goals of current and future poverty reduction. In this paper, the authors define any scheme requiring a specified course of action in order to receive a benefit as a conditional cash transfer. This definition includes cash transfers based on human capital investments, but is sufficiently broad to encompass other schemes such as work-fare programs or consumption transfers. The authors examine the rationales behind, the problems with, and the tradeoffs inherent to conditional cash transfer programs. They discuss two main concerns: low participation and fungibility. Low participation refers to the problem of program uptake. If individuals do not participate in the program...

The unique experimental design of the Food Support Programme (Programa de Apoyo Alimentario) is used to analyse in-kind and cash transfers in the poor rural areas of southern states of Mexico. The intent-to-treat effect on poverty of cash transfers of real value 25 per cent less than the market value of in-kind transfers is identical to that of in-kind transfers. Potential explanations of this result are investigated by looking into the differences in impacts of in-kind and cash transfers on food consumption and non-food expenditures and on the allocation of family labour between agricultural and non-agricultural activities. Both in-kind and cash transfers have identically large positive impacts on food consumption. Non-food expenditures are also higher in the localities with cash transfers, whereas they remain unaffected in the localities with in-kind transfers. Both kinds of transfers have a significant impact on the time allocation of males (and not females) who switch from agricultural to non-agricultural activities. But, the availability of cash transfers has a significantly higher marginal effect than in-kind transfers on the shift towards non-agricultural activities. Overall, the findings suggest that cash transfers may be better able than in-kind transfers at mitigating the impact of market imperfections...

Cash transfer programmes are a popular social protection tool in developing countries that aim, among other things, to improve education outcomes in developing countries. The debate over whether these programmes should include conditions has been at the forefront of recent policy discussions. This systematic review aims to complement the existing evidence on the effectiveness of these programmes in improving schooling outcomes and help inform the debate surrounding the design of cash transfer programmes. Using data from 75 reports that cover 35 different studies, the authors find that both conditional cash transfers (CCTs) and unconditional cash transfers (UCTs) improve the odds of being enrolled in and attending school compared to no cash transfer programme. The effect sizes for enrolment and attendance are always larger for CCTs compared to UCTs, but the difference is not statistically significant. When programmes are categorised as having no schooling conditions, having some conditions with minimal monitoring and enforcement and having explicit conditions that are monitored and enforced, a much clearer pattern emerges whereby programmes that are explicitly conditional, monitor compliance and penalise non-compliance have substantively larger effects (60% improvement in odds of enrolment). Unlike enrolment and attendance...

Cash transfers have been demonstrated to improve education and health outcomes and alleviate poverty in various contexts. However, policy makers and others often express concern that poor households will use transfers to buy alcohol, tobacco, or other "temptation goods." The income effect of transfers will increase expenditures if alcohol and tobacco are normal goods, but this may be offset by other effects, including the substitution effect, the effect of social messaging about the appropriate use of transfers, and the effect of shifting dynamics in intra-household bargaining. The net effect is ambiguous. This paper reviews 19 studies with quantitative evidence on the impact of cash transfers on temptation goods, as well as 11 studies that surveyed the number of respondents who reported they used transfers for temptation goods. Almost without exception, studies find either no significant impact or a significant negative impact of transfers on temptation goods. In the only (two, non-experimental) studies with positive significant impacts...

There is an increasing recognition that investment in human development at an earlier age can have a significant impact on the lifetime earnings capacity of an individual. This notion is the basis for the popularity of conditional cash transfer programs to help boost child health and education outcomes. The evidence on the impact of conditional cash transfers on health and education outcomes, however, is mixed. This paper uses panel data from a pilot project and evaluates the impact of conditional cash transfers on consumption, education, and nutrition outcomes among poor rural families in Bangladesh. Given implementation challenges the intervention was not able to improve school attendance. However the analysis shows that the pilot had a significant impact on the incidence of wasting among children who were 10-22 months old when the program started, reducing the share of children with weight-for-height below two standard deviations from the World Health Organization benchmark by 40 percent. The pilot was also able to improve nutrition knowledge: there was a significant increase in the proportion of beneficiary mothers who knew about the importance of exclusively breastfeeding infants until the age of six months. The results also suggest a significant positive impact on food consumption...

Cash is an appropriate instrument to provide assistance to poor and vulnerable households in most contexts in Myanmar. Cash transfers (CTs) have the potential to help poor and vulnerable householdsmeet basic needs and encourage investments in human capital accumulation. Building on existing programs such as the stipends program and testing CTs with relatively simple design and implementation arrangements can be a viable option in the short term.

Despite recent calls in support of cash transfers, there is little rigorous evidence of the relative impacts of cash versus in-kind transfers, especially in humanitarian contexts, where a majority of such programs take place. This paper uses data from a randomized experiment in the Democratic Republic of Congo to assess the relative impacts and costs of equivalently valued cash and voucher transfers. The voucher program distorted households’ purchases along both the extensive and intensive margin as compared with unconstrained cash households. Yet there were no differences in food consumption or other measures of well-being, in part due to the fact that voucher households were able to resell part of what they purchased. As there were no significant benefits to vouchers, cash transfers were the more cost effective modality for both the implementing agency and program recipients in this context.

Societies have a stake in ensuring that their youngest populations receive regular health check-ups and proper medical care when needed. Children whose health is protected and nurtured have a better chance of enrolling in school, learning, and growing to be healthy and productive adults, which in turns helps a country's development. So how can policymakers and development experts promote this? Increasingly, cash transfers are being used to encourage families to take basic preventive care measures, including regular health care visits for babies and young children and enrolling children in school. The transfers may be conditional, meaning families get the money if they take children for regular check-ups or enroll them in school; or they can be unconditional, in which case families receive the money without any strings attached, under the assumption that the extra cash will give parents the financial flexibility to ensure proper health visits and schooling. Cash transfers are being used across the world to encourage better use of education and health services by offering economic incentives that can significantly boost the incomes of poor households. Transfer programs can be conditional or unconditional...

A growing number of developing economies are providing cash transfers to poor people that require certain behaviors on their part, such as attending school or regularly visiting health care facilities. A simple ex ante methodology is proposed for evaluating such programs and used to assess the bolsa escola program in Brazil. The results suggest that about 60 percent of poor 10- to 15-year-olds not in school enroll in response to the program. The program reduces the incidence of poverty by only a little more than one percentage point, however, and the Gini coefficient falls just half a point. Results are better for measures more sensitive to the bottom of the distribution, but the effect is never large.

Cash transfer programs are widely used in settings where child labor is prevalent. Although many of these programs are explicitly implemented to improve children's welfare, in theory their impact on child labor is undetermined. This paper systematically reviews the empirical evidence on the impact of cash transfers, conditional and unconditional, on child labor. The authors find no evidence that cash transfer interventions increase child labor in practice. On the contrary, there is broad evidence that conditional and unconditional cash transfers lower both children's participation in child labor and hours worked and cushion the effect of economic shocks that may lead households to use child labor as a coping strategy. Boys experience particularly strong decreases in economic activities, girls in household chores. The findings underline the usefulness of cash transfers as a relatively safe policy instrument to improve child welfare, but also point to knowledge gaps, for instance regarding the interplay between cash transfers and other interventions...

This paper investigates the short-run consumption expenditure dynamics and the interaction of public and private arrangements of ultra-poor and labor-constrained households in Malawi using an original dataset from the Mchinjii social cash transfer pilot project (one of the first experiments of social protection policies based on unconditional cash transfers in Sub-Saharan Africa). The authors exploit the unique source of exogenous variation provided by the randomized component of the program in order to isolate the effect of cash transfers on consumption expenditures as well as the net crowding out effect of cash transfers on private arrangements. They find a statistically significant reduction effect on the level of consumption expenditures for those households receiving cash transfers, thus leading to the rejection of the perfect risk sharing hypothesis. Moreover, by looking at the effects of cash transfers on private arrangements in a context characterized by imperfect enforceability of contracts and by a social fabric heavily compromised by high HIV/AIDS rates...

This paper reviews key issues in the 'cash versus food' debate, including as they relate to political economy, theory, evidence, and practice. In doing so, it benefited from a new generation of 12 impact evaluations deliberately comparing alternative transfer modalities. Findings show that differences in effectiveness vary by indicator, although they tend to be moderate on average. In some cases differences are more marked (i.e., food consumption and calorie availability), but in most instances they are not statistically significant. In general, transfers' performance and their difference seem a function of the organic and fluid interactions among factors like the profile and 'initial conditions' of beneficiaries, the capacity of local markets, and program objectives and design. Costs associated with cash transfers and vouchers tend to be substantially lower relative to food. Yet methods for cost-effectiveness analysis vary and need to be more standardized and nuanced. The reviewed evaluations are helping to shift the debate from one shaped by ideology...

This paper presents evidence about the impact on school enrollment of a program in Ecuador that gives cash transfers to the 40 percent poorest families. The evaluation design consists of a randomized experiment for families around the first quintile of the poverty index and of a regression discontinuity design for families around the second quintile of this index, which is the program's eligibility threshold. This allows us to compare results from two different credible identification methods, and to investigate whether the impact varies with families' poverty level. Around the first quintile of the poverty index the impact is positive while it is equal to zero around the second quintile. This suggests that for the poorest families the program lifts a credit constraint while this is not the case for families close to the eligibility threshold.

Conditional cash transfer (CCT) programs aim to alleviate poverty through monetary and in-kind benefits, as well as reduce future levels of poverty by encouraging investments in education, health, and nutrition. The success of CCT programs at reducing poverty depends on whether, and the extent to which, cash transfers affect adult work incentives. The authors examine whether the PROGRESA program of Mexico affects adult participation in the labor market and overall adult leisure time, and they link these effects to the impact of the program on poverty. Using the experimental design of PROGRESA's evaluation sample, the authors find that the program does not have any significant effect on adult labor force participation and leisure time. Their findings on adult work incentives are reinforced further by the result that PROGRESA leads to a substantial reduction in poverty. The poverty reduction effects are stronger for the poverty gap and severity of poverty measures.

Public expenditures on non-insurance social protection cash transfers absorb a huge share of the entities' respective budgets. This level of spending requires buoyant public revenues. However, public revenues will be under continuing pressure in view of the impending economic crisis. Moreover, devoting a large proportion of public funds to social transfers has the effect of crowding out resources that could be devoted to public investments which will be increasingly needed to stimulate growth as the economy begins to sag under the impact of the world economic crisis. In addition, there is evidence that some rights based programs create disincentives for employment. This situation is fiscally unsustainable, economically inefficient, and socially inequitable. Bosnia and Herzegovina (BH) needs to completely overhaul it s non-insurance social protection cash transfer programs. There are many ways in which BH could reform these programs and put in place measures aimed at developing a social safety net that is: (a) less of a burden on public resources...