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Does Conditionality Generate Heterogeneity and Regressivity in Program Impacts? The Progresa Experience

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  • Campo, Juan Carlos Chavez-Martin del

Abstract

We study both empirically and theoretically the consequences of introducing a conditional cash transfer scheme for the distribution of program impacts. Intuitively, if the conditioned-on good is normal, then better-offhouseholds tend to receive a larger positive impact. I formalize this insight by means of a simple model of child labor, applying the Nash-Bargaining approach as the solution concept. A series of tests for heterogeneity in program impacts are developed and applied to Progresa, an anti-poverty program in Mexico. It can be concluded that this program exhibits a lot of heterogeneity in treatment effects. Consistent with the model, and under the assumption of rank preservation, program impacts are distributionally regressive, although positive, within the treated population

Suggested Citation

  • Campo, Juan Carlos Chavez-Martin del, 2006. "Does Conditionality Generate Heterogeneity and Regressivity in Program Impacts? The Progresa Experience," Working Papers 127042, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:127042
    DOI: 10.22004/ag.econ.127042
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    Cited by:

    1. Sosa-Rubí, Sandra G. & Galárraga, Omar & Harris, Jeffrey E., 2009. "Heterogeneous impact of the "Seguro Popular" program on the utilization of obstetrical services in Mexico, 2001-2006: A multinomial probit model with a discrete endogenous variable," Journal of Health Economics, Elsevier, vol. 28(1), pages 20-34, January.
    2. Djebbari, Habiba & Smith, Jeffrey, 2008. "Heterogeneous impacts in PROGRESA," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 64-80, July.
    3. Maike Hohberg & Peter Pütz & Thomas Kneib, 2020. "Treatment effects beyond the mean using distributional regression: Methods and guidance," PLOS ONE, Public Library of Science, vol. 15(2), pages 1-29, February.

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