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The Impact of a Cash Transfer Program on Cognitive Achievement: The Bono de Desarrollo Humano of Ecuador

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Author Info
Ponce, Juan () (Flacso)
Bedi, Arjun S. () (Institute of Social Studies)
Abstract

Throughout Latin America, conditional cash transfer (CCT) programs play an important role in social policy. These programs aim to influence the accumulation of human capital, as well as reduce poverty. In terms of educational outcomes, a number of impact evaluation studies have shown that such programs have led to an increase in school enrollment, ensured regular school attendance and led to a reduction in child labor. Theoretically, such cash transfer programs may also be expected to exert a positive impact on students’ test scores, but related empirical evidence is scarce. Accordingly, this paper evaluates the impact of a cash transfer program, the Bono de Desarrollo Humano of Ecuador, on students’ cognitive achievements. The paper uses a regression discontinuity strategy to identify the impact of the program on second grade cognitive achievement. Regardless of the specification and the sample used, we find that there is no impact of the program on test scores, suggesting that attempts at building human capital, as measured by cognitive achievement, require additional and alternative interventions.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3658.

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Length: 32 pages
Date of creation: Aug 2008
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Handle: RePEc:iza:izadps:dp3658

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Related research
Keywords: cash transfers test scores regression discontinuity

Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
I28 - Health, Education, and Welfare - - Education - - - Government Policy

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Mauricio León & Stephen D. Younger, 2007. "Transfer payments, mothers' income and child health in ecuador," The Journal of Development Studies, Taylor and Francis Journals, vol. 43(6), pages 1126-1143. [Downloadable!] (restricted)
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  3. Bedard, Kelly & Ferrall, Christopher, 2003. "Wage and test score dispersion: some international evidence," Economics of Education Review, Elsevier, vol. 22(1), pages 31-43, February. [Downloadable!] (restricted)
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  4. Bedi, Arjun S. & Marshall, Jeffery H., 2002. "Primary school attendance in Honduras," Journal of Development Economics, Elsevier, vol. 69(1), pages 129-153, October. [Downloadable!] (restricted)
  5. Alderman, Harold, et al, 1996. "The Returns to Endogenous Human Capital in Pakistan's Rural Wage Labour Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 29-55, February.
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  6. Rose, Heather, 2006. "Do gains in test scores explain labor market outcomes?," Economics of Education Review, Elsevier, vol. 25(4), pages 430-446, August. [Downloadable!] (restricted)
  7. Bedi, Arjun S & Marshall, Jeffrey H, 1999. "School Attendance and Student Achievement: Evidence from Rural Honduras," Economic Development and Cultural Change, University of Chicago Press, vol. 47(3), pages 657-82, April.
  8. Boissiere, M & Knight, J B & Sabot, R H, 1985. "Earnings, Schooling, Ability, and Cognitive Skills," American Economic Review, American Economic Association, vol. 75(5), pages 1016-30, December. [Downloadable!] (restricted)
  9. 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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This page was last updated on 2008-12-1.


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