IDEAS home Printed from https://ideas.repec.org/p/phs/dpaper/201502.html
   My bibliography  Save this paper

Where does the money go? Assessing the expenditure and income effects of the Philippines' Conditional Cash Transfer Program

Author

Listed:
  • Stella Luz A. Quimbo

    (School of Economics, University of the Philippines Diliman)

  • Joseph J. Capuno

    (School of Economics, University of the Philippines Diliman)

  • Aleli D. Kraft

    (School of Economics, University of the Philippines Diliman)

  • Rhea Molato

    (School of Economics, University of the Philippines Diliman)

  • Carlos Tan, Jr.

    (School of Economics, University of the Philippines Diliman)

Abstract

Evaluation studies on conditional cash transfers (CCT) in the Philippines found small if not insignificantly different from zero effects on household consumption. We use propensity score matching to examine how recipients made use of the money they received, taking into account possible changes in recipient behavior. We find evidence of crowding in—CCT households receive higher transfers from other domestic sources as a positive spillover from becoming CCT beneficiaries Poor CCT households tend to lower their dissavings while non-poor beneficiaries become less indebted. We also find evidence of lower income, lower wages, and lower work-related expenses.

Suggested Citation

  • Stella Luz A. Quimbo & Joseph J. Capuno & Aleli D. Kraft & Rhea Molato & Carlos Tan, Jr., 2015. "Where does the money go? Assessing the expenditure and income effects of the Philippines' Conditional Cash Transfer Program," UP School of Economics Discussion Papers 201502, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:201502
    as

    Download full text from publisher

    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/1472/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Manuela Angelucci & Orazio Attanasio & Vincenzo Di Maro, 2012. "The Impact of Oportunidades on Consumption, Savings and Transfers," Fiscal Studies, Institute for Fiscal Studies, vol. 33(3), pages 305-334, September.
    2. Melba V. Tutor, 2014. "The Impact of Philippines’ Conditional Cash Transfer Program on Consumption," UP School of Economics Discussion Papers 201405, University of the Philippines School of Economics.
    3. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    4. Luis Rubalcava & Graciela Teruel & Duncan Thomas, 2009. "Investments, Time Preferences, and Public Transfers Paid to Women," Economic Development and Cultural Change, University of Chicago Press, vol. 57(3), pages 507-538, April.
    5. Tabuga, Aubrey D. & Mina, Christian D. & Reyes, Celia M. & Asis, Ronina D., 2013. "Promoting Inclusive Growth through the 4Ps," Discussion Papers DP 2013-09, Philippine Institute for Development Studies.
    6. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
    7. Orazio Attanasio & Alice Mesnard, 2006. "The Impact of a Conditional Cash Transfer Programme on Consumption in Colombia," Fiscal Studies, Institute for Fiscal Studies, vol. 27(4), pages 421-442, December.
    8. Jessica Erin Todd & Paul Winters & Tom Hertz, 2010. "Conditional Cash Transfers and Agricultural Production: Lessons from the Oportunidades Experience in Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 39-67.
    9. Hernandez, Emilio & Sam, Abdoul G. & Gonzalez-Vega, Claudio & Chen, Joyce J., 2009. "Impact of Conditional Cash Transfers and Remittances on Credit Market Outcomes in Rural Nicaragua," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49319, Agricultural and Applied Economics Association.
    10. Tavares, Priscilla Albuquerque, 2010. "Efeito do Programa Bolsa Família sobre a oferta de trabalho das mães," Revista Economia e Sociedade, Instituto de Economia, Universidade Estadual de Campinas (UNICAMP), vol. 41, pages 1-23, December.
    11. Paul J. Gertler & Sebastian W. Martinez & Marta Rubio-Codina, 2012. "Investing Cash Transfers to Raise Long-Term Living Standards," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 164-192, January.
    12. World Bank, 2013. "Philippines Conditional Cash Transfer Program : Impact Evaluation 2012," World Bank Publications - Reports 13244, The World Bank Group.
    13. Emmanuel Skoufias & Susan Wendy Parker, 2001. "Conditional Cash Transfers and Their Impact on Child Work and Schooling: Evidence from the PROGRESA Program in Mexico," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2001), pages 45-96, August.
    14. Ximena V. Del Carpio & Karen Macours, 2010. "Leveling the intra-household playing field: compensation and specialization in child labor allocation," Research in Labor Economics, in: Child Labor and the Transition between School and Work, pages 259-295, Emerald Group Publishing Limited.
    15. Emmanuel Skoufias & Vincenzo Di Maro, 2008. "Conditional Cash Transfers, Adult Work Incentives, and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 44(7), pages 935-960.
    16. Manuela Angelucci & Giacomo De Giorgi, 2009. "Indirect Effects of an Aid Program: How Do Cash Transfers Affect Ineligibles' Consumption?," American Economic Review, American Economic Association, vol. 99(1), pages 486-508, March.
    17. Miguel Nathan Foguel & Ricardo Paes de Barros, 2008. "The Effects of Conditional Cash Transfer Programmes on Adult Labour Supply: An Empirical Analysis Using a Time-Series-Cross-Section," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211655420, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    18. Paul Gertler, 2004. "Do Conditional Cash Transfers Improve Child Health? Evidence from PROGRESA's Control Randomized Experiment," American Economic Review, American Economic Association, vol. 94(2), pages 336-341, May.
    19. Fernando Borraz & Nicolás González, 2009. "Impact of the Uruguayan Conditional Cash Transfer Program," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 46(134), pages 243-271.
    20. Melba V. Tutor, 2014. "The impact of the PhilippinesÕ conditional cash transfer program on consumption," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 51(1), pages 117-161, June.
    21. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications - Books, The World Bank Group, number 2597.
    22. Jere R. Behrman & Susan W. Parker & Petra E. Todd, 2005. "Long-Term Impacts of the Oportunidades Conditional Cash Transfer Program on Rural Youth in Mexico," Ibero America Institute for Econ. Research (IAI) Discussion Papers 122, Ibero-America Institute for Economic Research.
    23. Clarissa Gondim Teixeira, 2010. "A Heterogeneity Analysis of the Bolsa Família Programme Effect on Men and Women’s Work Supply," Working Papers 61, International Policy Centre for Inclusive Growth.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stella A. Quimbo & Aleli D. Kraft & Rhea M. Molato‐Gayares & Carlos Antonio R. Tan & Joseph J. Capuno, 2021. "How do the intended and unintended beneficiaries respond to the Philippines' conditional cash transfer program?," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1267-1292, August.
    2. Naila Kabeer & Hugh Waddington, 2015. "Economic impacts of conditional cash transfer programmes: a systematic review and meta-analysis," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 7(3), pages 290-303, September.
    3. Rafael Novella & Laura Ripani & Claudia Vazquez, 2021. "Conditional cash transfers, female bargaining power and parental labour supply," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 422-436, March.
    4. Jacobus de Hoop & Jed Friedman & Eeshani Kandpal & Furio C. Rosati, 2019. "Child Schooling and Child Work in the Presence of a Partial Education Subsidy," Journal of Human Resources, University of Wisconsin Press, vol. 54(2), pages 503-531.
    5. Rafael P. Ribas, 2014. "Liquidity Constraints, Informal Financing, and Entrepreneurship: Direct and Indirect Effects of a Cash Transfer Programme," Working Papers 131, International Policy Centre for Inclusive Growth.
    6. Melba V. Tutor, 2014. "The impact of the PhilippinesÕ conditional cash transfer program on consumption," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 51(1), pages 117-161, June.
    7. Barrientos, Armando, 2012. "Social Transfers and Growth: What Do We Know? What Do We Need to Find Out?," World Development, Elsevier, vol. 40(1), pages 11-20.
    8. Paul J. Gertler & Sebastian W. Martinez & Marta Rubio-Codina, 2012. "Investing Cash Transfers to Raise Long-Term Living Standards," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 164-192, January.
    9. Abhijit V. Banerjee & Rema Hanna & Gabriel E. Kreindler & Benjamin A. Olken, 2017. "Debunking the Stereotype of the Lazy Welfare Recipient: Evidence from Cash Transfer Programs," The World Bank Research Observer, World Bank, vol. 32(2), pages 155-184.
    10. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications - Books, The World Bank Group, number 2597.
    11. Achyuta Adhvaryu & Teresa Molina & Anant Nyshadham & Jorge Tamayo, 2024. "Helping Children Catch Up: Early Life Shocks and the PROGRESA Experiment," The Economic Journal, Royal Economic Society, vol. 134(657), pages 1-22.
    12. Jacobus de Hoop & Furio C. Rosati, 2014. "Cash Transfers and Child Labor," The World Bank Research Observer, World Bank, vol. 29(2), pages 202-234.
    13. Orazio P. Attanasio & Valérie Lechene, 2014. "Efficient Responses to Targeted Cash Transfers," Journal of Political Economy, University of Chicago Press, vol. 122(1), pages 178-222.
    14. Solomon Asfaw & Silvio Daidone & Benjamin Davis & Josh Dewbre & Alessandro Romeo & Paul Winters & Katia Covarrubias & Habiba Djebbari, 2012. "Analytical Framework for Evaluating the Productive Impact of Cash Transfer Programmes on Household Behaviour – Methodological Guidelines for the From Protection to Production Project," Working Papers 101, International Policy Centre for Inclusive Growth.
    15. 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.
    16. María Alzúa & Guillermo Cruces & Laura Ripani, 2013. "Welfare programs and labor supply in developing countries: experimental evidence from Latin America," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1255-1284, October.
    17. Eric Ekobor-Ackah Mochiah & Robert Darko Osei & Isaac Osei Akoto, 2014. "The Impact of Conditional Cash Transfer Programmes on Household Work Decisions in Ghana," WIDER Working Paper Series wp-2014-116, World Institute for Development Economic Research (UNU-WIDER).
    18. Mochiah, Eric Ekobor-Ackah & Osei, Robert Darko & Osei Akoto, Isaac, 2014. "The impact of conditional cash transfer programmes on household work decisions in Ghana," WIDER Working Paper Series 116, World Institute for Development Economic Research (UNU-WIDER).
    19. Leibbrandt, Murray & Lilenstein, Kezia & Shenker, Callie & Woolard, Ingrid, 2013. "The influence of social transfers on labour supply: A South African and international review," SALDRU Working Papers 112, Southern Africa Labour and Development Research Unit, University of Cape Town.
    20. Melba V. Tutor, 2014. "The Impact of Philippines’ Conditional Cash Transfer Program on Consumption," UP School of Economics Discussion Papers 201405, University of the Philippines School of Economics.

    More about this item

    Keywords

    Conditional cash transfers; household income and consumption; Philippines;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phs:dpaper:201502. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RT Campos (email available below). General contact details of provider: https://edirc.repec.org/data/seupdph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.