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Conditional cash transfers, spillovers, and informal health care: Evidence from Peru

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  • Natalia Guerrero
  • Oswaldo Molina
  • Diego Winkelried

Abstract

Conditional cash transfer programs have become instrumental in encouraging the use of formal health services in developing countries, but little is known about their effect on the use of low‐quality informal care. Using a large survey of Peruvian rural households and a regression discontinuity design, we find a sizeable reduction in the use of informal health care providers not only by targeted but also by nontargeted members of households that qualify for the program. This indicates the existence of spillover effects within the household. We also provide evidence that beyond the direct increase in income, the availability of better information about institutional services is a potential mechanism that drives these effects.

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  • Natalia Guerrero & Oswaldo Molina & Diego Winkelried, 2020. "Conditional cash transfers, spillovers, and informal health care: Evidence from Peru," Health Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 111-122, February.
    • Handle: RePEc:wly:hlthec:v:29:y:2020:i:2:p:111-122
    DOI: 10.1002/hec.3956
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    2. Somdeep Chatterjee & Prashant Poddar, 2021. "From Safe Motherhood to Cognitive Ability: Exploring Intrahousehold and Intergenerational Spillovers," Economica, London School of Economics and Political Science, vol. 88(352), pages 1075-1106, October.

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    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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