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The Leaky Bucket: Transition Costs from Cash to Deposits in a Mexican Transfer Program

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  • Fernanda Marquez-Padilla
  • Susan W. Parker

Abstract

We study the effects of an experimental transition to account deposits from cash on rural women’s receipt of payments and their monetary and time costs of obtaining benefits. The context for our experiment is the Prospera program from Mexico, the pioneering conditional cash transfer program. We find that beneficiaries transitioned to receive deposits incur higher costs of collecting transfers (both time and money) and report feeling significantly less safe when collecting transfers. Furthermore, they are significantly less likely to report receiving their complete transfer, potentially due to bank commissions.

Suggested Citation

  • Fernanda Marquez-Padilla & Susan W. Parker, 2024. "The Leaky Bucket: Transition Costs from Cash to Deposits in a Mexican Transfer Program," Economic Development and Cultural Change, University of Chicago Press, vol. 73(1), pages 37-59.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/726538
    DOI: 10.1086/726538
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