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Cash transfers, conditions, school enrollment, and child work : evidence from a randomized experiment in Ecuador, Volume 1
 
Author:Schady, Norbert; Araujo, Maria Caridad; Country:Ecuador;
Date Stored:2006/05/30Document Date:2006/06/01
Document Type:Policy Research Working PaperSubTopics:Small Area Estimation Poverty Mapping; Primary Education; Municipal Housing and Land; Real Estate Development; Land and Real Estate Development
Language:EnglishRegion:Latin America & Caribbean
Report Number:WPS3930Collection Title:Policy, Research working paper ; no. WPS 3930Impact evaluation series ; no. IE 3
Volume No:1  

Summary: The impact of cash transfer programs on the accumulation of human capital is a topic of great policy importance. An attendant question is whether program effects are larger when transfers are "conditioned" on certain behaviors, such as a requirement that households enroll their children in school. This paper uses a randomized study design to analyze the impact of the Bono de Desarrollo Humano (BDH), a cash transfer program, on enrollment and child work among poor children in Ecuador. There are two main results. First, the BDH program had a large, positive impact on school enrollment, about 10 percentage points, and a large, negative impact on child work, about 17 percentage points. Second, the fact that some households believed that there was a school enrollment requirement attached to the transfers, even though such a requirement was never enforced or monitored in Ecuador, helps explain the magnitude of program effects.

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