|Find out how conditional cash transfers influence household behaviors in terms of education, health, consumption and savings...|
Since mid-1990s, conditional cash transfer (CCT) programmes have become quite popular among policymakers and policy advisers (including international institutions) as effective and efficient means to reduce poverty in developing countries. Especially in Latin America, where most countries have already implemented some sort of CCT programme in their anti-poverty strategies.
These programmes aim to alleviate poverty in the short run, through the cash transfers, and to break the intergenerational transmission of poverty by fostering the accumulation of human capital. Hence they are based not only on income distribution but also on certain actions that households are required to take in order to receive the transfer (conditionality). These actions are usually related to children’s attendance at school, regular visits to health centres by pregnant women and children, and the updating of immunisation cards. Some programmes also include family support initiatives that seek to promote autonomous income generation on the part of beneficiary households, as well as their social participation. Therefore, these programmes intend to reduce poverty not only by increasing household income but also by changing the behaviour of poor families.
A team of PEP-supported researchers used highly sophisticated impact evaluation and decomposition techniques to assess the effect (including potential externality effects) of a conditional cash transfer (CCT) program in Paraguay (Tekoporã) on a variety of dimensions related to well-being and household behaviors. Outcomes were substantial and thus reported in two distinct PEP research papers.
One (2011-19) reports on the impact of 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 (related to non-monetary programme components, such as the conditionalities and family support visits). Find the complete report on the results of this particular aspect of their research in PEP Working Paper 2011-19
The other (2011-18) explores further the potential effects of externalities by decomposing the observed changes in household outcomes, or more specifically the impact of cash transfers on household income, consumption and savings in Paraguay. Find out about these specific results in PEP Working Paper 2011-18
These research papers present the results based on the findings of the PEP-supported research project PIERI-11242
Find out more recent findings from PEP-supported research initiatives, here.