Are there diminishing returns to transfer size in conditional cash transfers ?, Vol. 1 of 1

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Are there diminishing returns to transfer size in conditional cash transfers ?

Author:	Filmer, Deon; Schady, Norbert;	Collection Title:	Impact Evaluation series ; no. 35 # Policy Research working paper ; no. WPS 4999Policy Research working paper ; no. WPS 4999
Country:	Cambodia;	Date Stored:	2009/07/17
Document Date:	2009/07/01	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Industry and trade
Rel. Proj ID:	KH-Impact Evaluation In Cambodia -- -- P095662;	Region:	East Asia and Pacific
Report Number:	WPS4999	Sub Sectors:	Other industry
SubTopics:	Primary Education; Access to Finance; Tertiary Education; Education For All;	TF No/Name:	TF055023-BNPP-
Volume No:	1 of 1

Summary: There is increasing evidence that conditional cash transfer programs can have large impacts on school enrollment, including in very poor countries. However, little is known about which features of program design -- including the amount of the cash that is transferred, how frequently conditions are monitored, whether non-complying households are penalized, and the identity or gender of the cash recipients -- account for the observed outcomes. This paper analyzes the impact of one feature of program design -- namely, the magnitude of the transfer. The analysis uses data from a program in Cambodia that deliberately altered the transfer amounts received by otherwise comparable households. The findings show clear evidence of diminishing marginal returns to transfer size despite the fact that even the larger transfers represented on average only 3 percent of the consumption of the median recipient households. If applicable to other settings, these results have important implications for other programs that transfer cash with the explicit aim of increasing school enrollment levels in developing countries.


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