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The Coffee Crisis, Early Childhood Development, and Conditional Cash Transfers

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  • Seth R. Gitter
  • James Manley
  • Bradford Barham

Abstract

This paper examines the efficacy of three conditional cash transfer (CCT) programs in Honduras, Mexico, and Nicaragua in mitigating the potential negative effects of an income shock caused by falling prices of coffee, an important cash crop to many CCT participants. A theoretical household model is developed that demonstrates both the positive potential of CCTs to mitigate negative shocks effects on early childhood development and the negative potential of CCTs to exacerbate the impacts of a negative shock to early childhood development if the conditionality encourages households to shift resources from younger to older children to sustain their school attendance. The experimental design includes both CCT and non-CCT households and communities with and without coffee production. The paper finds that in Mexico the CCT mitigated the negative shock on child height-for-age z-scores, while in Nicaragua coffeeproducing households who participated in CCTs saw greater declines in z-scores. Findings for Honduras are largely inconclusive.

Suggested Citation

  • Seth R. Gitter & James Manley & Bradford Barham, 2011. "The Coffee Crisis, Early Childhood Development, and Conditional Cash Transfers," Research Department Publications 4715, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4715
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    Cited by:

    1. Manley, James & Gitter, Seth & Slavchevska, Vanya, 2013. "How Effective are Cash Transfers at Improving Nutritional Status?," World Development, Elsevier, vol. 48(C), pages 133-155.
    2. Seth R. Gitter & James Manley & Vanya Slavchevska, 2010. "How Effective are Cash Transfer Programs at Improving Nutritional Status?," Working Papers 2010-18, Towson University, Department of Economics, revised Dec 2012.
    3. Margaret Grosh & Maurizio Bussolo & Samuel Freije, 2014. "Understanding the Poverty Impact of the Global Financial Crisis in Latin America and the Caribbean," World Bank Publications - Books, The World Bank Group, number 18727.
    4. Independent Evaluation Group, 2014. "Social Safety Nets and Gender : Learning from Impact Evaluations and World Bank Projects," World Bank Publications - Books, The World Bank Group, number 21365.
    5. Mesnard, Alice & Fitzsimons, Emla, 2012. "How children?s schooling and work is affected when their father leaves permanently: Evidence from Colombia," CEPR Discussion Papers 8886, C.E.P.R. Discussion Papers.
    6. Emla Fitzsimons & Alice Mesnard, 2012. "How children's schooling and work are affected when their father leaves permanently: evidence from Colombia," IFS Working Papers W12/04, Institute for Fiscal Studies.

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    More about this item

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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