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Heterogeneous Impacts of Conditional Cash Transfers: Evidence from Nicaragua

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Dammert, Ana C. () (Carleton University)

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Abstract

In the last decade, the most popular policy tool used to increase human capital in developing countries has been the conditional cash transfer program. A large literature has shown significant mean impacts on schooling, health, and child labor. This paper examines heterogeneous effects using random-assignment data from the Red de Proteccion Social in rural Nicaragua. Using interactions between the targeting criteria and the treatment indicator, estimates suggest that children located in more impoverished localities experienced a larger impact of the program on schooling in 2001, but this finding is reversed in 2002. Estimated quantile treatment effects indicate that there is considerable heterogeneity in the impacts of the program on the distribution of food expenditures, as well as total expenditures. In particular, households at the lower end of the expenditure distribution experienced a smaller increase in expenditures. This paper also presents evidence of the rank invariance assumption to help clarify the interpretation of the quantile treatment effect in the development literature context.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3653.

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Length: 2009 pages
Date of creation: Aug 2008
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Publication status: forthcoming in: Economic Development and Cultural Change, 2009
Handle: RePEc:iza:izadps:dp3653

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Keywords: conditional cash transfers quantile treatment effect Nicaragua

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Find related papers by JEL classification:
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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  3. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January. [Downloadable!] (restricted)
  4. Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes, 2006. "What Mean Impacts Miss: Distributional Effects of Welfare Reform Experiments," American Economic Review, American Economic Association, vol. 96(4), pages 988-1012, September. [Downloadable!]
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  5. Duflo, Esther & Glennerster, Rachel & Kremer, Michael, 2007. "Using Randomization in Development Economics Research: A Toolkit," CEPR Discussion Papers 6059, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Ravallion, Martin, 2005. "Evaluating anti-poverty programs," Policy Research Working Paper Series 3625, The World Bank. [Downloadable!]
  7. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June. [Downloadable!] (restricted)
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  1. Djebbari, Habiba & Smith, Jeffrey A., 2008. "Heterogeneous Impacts in PROGRESA," IZA Discussion Papers 3362, Institute for the Study of Labor (IZA). [Downloadable!]
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