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Externality and Behavioural Change Effects of a Non-randomised CCT Programme: Heterogeneous Impact on the Demand for Health and Education

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  • Rafael Perez Ribas
  • Fabio Veras Soares
  • Clarissa Teixeira
  • Elydia Silva
  • Guilherme Hirata

Abstract

This paper investigates the impact of the pilot phase of Paraguay’s conditional cash transfer programme, Tekoporã, on the demand for healthcare and education, and how much of this impact was due to the cash transfers and/or due to changes in behaviour/preferences, possibly as an effect of other, non-monetary programme components such as the conditionalities and family support visits. It also explores the presence of externalities effects through a decomposition of the average treatment effect on the treated (ATT) into participation and externality effect. This decomposition was possible thanks to the use of two distinct comparison groups, one within the village and possibly exposed to the externality, and another in a different district not affected by the programme. The results indicate that the programme was successful in improving children’s attendance at school and increasing visits to the health centres. They also suggest that the positive impacts do not reach non-beneficiary families (no externality effect). In the pilot phase, with no conditionality enforcement in place, the role of conditionality and social worker visits is not yet clear. No differential effect was found for those who were aware of the conditionalities and/or were visited by social workers, although the message of the importance of education and healthcare somehow did reach the households, altering their preferences towards a greater consumption of healthcare and education services.

Suggested Citation

  • Rafael Perez Ribas & Fabio Veras Soares & Clarissa Teixeira & Elydia Silva & Guilherme Hirata, 2011. "Externality and Behavioural Change Effects of a Non-randomised CCT Programme: Heterogeneous Impact on the Demand for Health and Education," Working Papers PIERI 2011-19, PEP-PIERI.
    • Handle: RePEc:lvl:piercr:2011-19
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    1. Witvorapong, Nopphol & Foshanji, Abo Ismael, 2016. "The impact of a conditional cash transfer program on the utilization of non-targeted services: Evidence from Afghanistan," Social Science & Medicine, Elsevier, vol. 152(C), pages 87-95.
    2. Sandra García & Juan Saavedra, 2017. "Educational Impacts and Cost-Effectiveness of Conditional Cash Transfer Programs in Developing Countries: A Meta-Analysis," NBER Working Papers 23594, National Bureau of Economic Research, Inc.
    3. Noemi Pace & Silvio Daidone & Benjamin Davis & Luca Pellerano, 2016. "Does "soft conditionality" increase the impact of cash transfers on desired outcomes? Evidence from a randomized control trial in Lesotho," Working Papers 2016:33, Department of Economics, University of Venice "Ca' Foscari".
    4. Barrientos Armando & Villa Juan Miguel, 2015. "Evaluating Antipoverty Transfer Programmes in Latin America and Sub-Saharan Africa. Better Policies? Better Politics?," Journal of Globalization and Development, De Gruyter, vol. 6(1), pages 147-179, June.
    5. Clarissa Gondim Teixeira & Fabio Veras Soares & Elydia Silva & Guilherme Issamu Hirata, 2012. "¿Qué tan Eficaces son los Componentes no Monetarios de los Programas de Transferencias Condicionadas: El Caso del Piloto de Tekopora?," One Pager Spanish 129, International Policy Centre for Inclusive Growth.

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    More about this item

    Keywords

    Externality; Income effect; Behaviour effect; Conditional cash transfer;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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