Publication: Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood : Evidence from a Randomized Experiment
Loading...
Files in English
573 downloads
Published
2012-07
ISSN
1945-7782
Date
2014-04-21
Author(s)
Editor(s)
Abstract
Cash transfer programs have become extremely popular in the developing world. A large literature analyzes their effects on schooling, health and nutrition, but relatively little is known about possible impacts on child development. This paper analyzes the impact of a cash transfer program on early childhood cognitive development. Children in households randomly assigned to receive benefits had significantly higher levels of development nine months after the program began. There is no fade-out of program effects two years after the program ended. Additional random variation shows that these impacts are unlikely to result from the cash component of the program alone.
Link to Data Set
Digital Object Identifier
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood : Evidence from a Randomized Experiment(World Bank, Washington, DC, 2008-10)A variety of theories of skill formation suggest that investments in schooling and other dimensions of human capital will have lower returns if children do not have adequate levels of cognitive and social skills at an early age. This paper analyzes the impact of a randomized cash transfer program on cognitive development in early childhood in rural Nicaragua. It shows that the program had significant effects on cognitive outcomes, especially language. Impacts are larger for older pre-school age children, who are also more likely to be delayed. The program increased intake of nutrient-rich foods, early stimulation, and use of preventive health care-all of which have been identified as risk factors for development in early childhood. Households increased expenditures on these inputs more than can be accounted for by the increases in cash income only, suggesting that the program changed parents' behavior. The findings suggest that gains in early childhood development outcomes should be taken into account when assessing the benefits of cash transfer programs in developing countries. More broadly, the paper illustrates that gains in early childhood development can result from interventions that facilitate investments made by parents to reduce risk factors for cognitive development.Publication Wealth Gradients in Early Childhood Cognitive Development in Five Latin American Countries(World Bank, Washington, DC, 2014-02)Research from the United States shows that gaps in early cognitive and noncognitive abilities appear early in the life cycle. Little is known about this important question for developing countries. This paper provides new evidence of sharp differences in cognitive development by socioeconomic status in early childhood for five Latin American countries. To help with comparability, the paper uses the same measure of receptive language ability for all five countries. It finds important differences in development in early childhood across countries, and steep socioeconomic gradients within every country. For the three countries where panel data to follow children over time exists, there are few substantive changes in scores once children enter school. These results are robust to different ways of defining socioeconomic status, to different ways of standardizing outcomes, and to selective non-response on the measure of cognitive development.Publication Seasonal Migration and Early Childhood Development(2010)This paper provides unique evidence of the positive consequences of seasonal migration for investments in early childhood development. We analyze migration in a poor shock-prone border region in rural Nicaragua where it offers one of the main household income diversification and risk-coping strategies. IV estimates show, somewhat surprisingly, that shock-driven migration by mothers has a positive effect on early cognitive development. We attribute these findings to changes in income and to the intra-household empowerment gains resulting from mother's migration, which offset potential negative early childhood development effects from temporary lack of parenting.Publication Changing Households’ Investments and Aspirations through Social Interactions : Evidence from a Randomized Transfer Program(2009-11-01)Low aspirations can limit households investments and contribute to sustained poverty. Vice versa, increased aspirations can lead to investment and upward mobility. Yet how aspirations are formed is not always well understood. This paper analyzes the role of social interactions in determining aspirations in the context of a program aimed at increasing households' investments. The causal effect of social interactions is identified through the randomized assignment of leaders and other beneficiaries to three different interventions within each treatment community. Social interactions are found to affect households attitudes toward the future and to amplify program impacts on investments in human capital and productive activities. The empirical evidence indicates that communication with motivated and successful nearby leaders can lead to higher aspirations and corresponding investment behavior.Publication Transfers, Diversification and Household Risk Strategies : Experimental Evidence with Lessons for Climate Change Adaptation(World Bank, Washington, DC, 2012-04)While climate change is likely to increase weather risks in many developing countries, there is little evidence on effective policies to facilitate adaptation. This paper presents experimental evidence on a program in rural Nicaragua aimed at improving households' risk-management through income diversification. The intervention targeted agricultural households exposed to weather shocks related to changes in rainfall and temperature patterns. It combined a conditional cash transfer with vocational training or a productive investment grant. The authors identify the relative impact of each complementary package based on randomized assignment, and analyze how impacts vary by exposure to exogenous drought shocks. The results show that both complementary interventions provide full protection against drought shocks two years after the end of the intervention. Households that received the productive investment grant also had higher average consumption levels. The complementary interventions led to diversification of economic activities and better protection from shocks compared to beneficiaries of the basic conditional cash transfer and control households. These results show that combining safety nets with productive interventions can help households manage future weather risks and promote longer-term program impacts.
Users also downloaded
Showing related downloaded files
Publication Who on Earth Is Using Generative AI ?(Washington, DC: World Bank, 2024-08-22)Leveraging unconventional data, including website traffic data and Google Trends, this paper unveils the real-time usage patterns of generative artificial intelligence tools by individuals across countries. The paper also examines country-level factors driving the uptake and early impacts of generative artificial intelligence on online activities. As of March 2024, the top 40 generative artificial intelligence tools attract nearly 3 billion visits per month from hundreds of millions of users. ChatGPT alone commanded 82.5 percent of the traffic, yet reaching only one-eightieth of Google’s monthly visits. Generative artificial intelligence users skew young, highly educated, and male, particularly for video generation tools, with usage patterns strongly indicating productivity-related activities. Generative artificial intelligence has achieved unprecedentedly rapid global diffusion, reaching almost all economies worldwide within 16 months of ChatGPT’s release. Middle-income economies have disproportionately high adoption of generative artificial intelligence relative to their economic scale, now contribute more than 50 percent of global traffic, while low-income economies contribute less than 1 percent. Regression analysis reveals that income level, share of youth population, digital infrastructure, specialization in high-skill tradable services, English proficiency, and human capital are strongly correlated with higher uptake of generative artificial intelligence. The paper also documents disruptions in online traffic patterns and emphasizes the need for targeted investments in digital infrastructure and skills development to harness the full potential of artificial intelligence.Publication Finance and Prosperity 2024(Washington, DC: World Bank, 2024-08-29)While financial sector risks in the larger and higher per capita countries are moderate, half of lower-income countries face significant risks over the next 12 months. Nearly 70 percent of countries facing high financial sector risks are currently not adequately prepared to handle financial stress. The report also identifies a particular risk facing financial sectors in several countries: a large and growing exposure to sovereign debt. This exposure surged to its highest level in the past decade. Finally, the report looks at how countries can enable more climate finance through the banking sector without compromising on the important goals of financial sector stability and inclusion for underserved people.Publication The Nuts & Bolts of Jamkesmas, Indonesia’s Government-Financed Health Coverage Program for the Poor and Near-Poor(World Bank, Washington DC, 2013-01)This case study describes and assesses Jamkesmas, Indonesia's government-financed health coverage program for the poor and near-poor. It provides a detailed description of the scope, depth, and breadth of coverage provided under Jamkesmas, and highlights ways in which the program interacts with the rest of Indonesia's health system. It also summarizes and discusses evidence on whether Jamkesmas is attaining its stated objectives of removing financial barriers and improving access to health care by the poor and near-poor, what could be improved, and what lessons can be learned from the experience of Jamkesmas that could help inform Indonesia's quest for universal coverage. The primary theme underlying the study is that supply-side constraints and supply-side subsidies have not been leveraged to increase the effectiveness of the Jamkesmas program. There are significant geographic deficiencies in the availability and quality of the basic benefits package, especially for those living in relatively remote and rural locations of the country, and this limits the effective availability of benefits for many Jamkesmas beneficiaries. The remainder of the case study is organized as follows. Section two provides general background and information on health system outcomes in Indonesia. Section three is an overview of health care financing and delivery. Section four describes the institutional architecture of Jamkesmas. Section five highlights the process of targeting, identification, and enrolment of beneficiaries under the program. Section six focuses on the role of public financing. Section seven outlines the basic benefits package. Section eight provides an overview of the information environment of Jamkesmas. Section nine discusses the special theme of supply-side constraints and supply-side subsidies that dilute the effectiveness of the Jamkesmas program. Section ten discusses the pending agenda around some of the architectural and operational features of Jamkesmas in the context of universal coverage.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication Raskin Subsidized Rice Delivery(World Bank, Jakarta, 2012-02)The Beras untuk Rakyat Miskin (Raskin) program was introduced as an emergency food security program in 1998; it delivers rice to be purchased at subsidized prices, prioritized to poor and near-poor households. In terms of government expenditure, Raskin remains the largest permanent social assistance transfer targeted to poor households in Indonesia. Though developed as a response to crisis, Raskin has become a permanent program and in real expenditure terms is one of the few social assistance programs with a larger budget in 2010 than in 2005. In 2010 Raskin accounted for nearly 53 percent of all household-targeted social assistance spending carried out by the central government. Over 2000 to 2010, the amount of rice allocated by the Raskin program has averaged over 2 million tons per year; in 2010 the almost 3 million tons allocated could have delivered between 30 and 40 kilograms per month to the approximately 6.2 million households at or below the poverty line. The distribution of Raskin rice does not closely align with the objectives laid out in program manuals and official documentation for at least three reasons. First, not all of the rice procured for the Raskin program makes it to households. In the three most recent years for which there is audited budget data (2007 through 2009), nationally representative household surveys indicate that only half (or less) of the rice procured for Raskin is purchased by households. The readily-available budget and administrative records cannot indicate where the bulk of this "missing" rice exits the delivery chain, and no single agency or authority is in charge of Raskin rice from procurement to household purchase. This note assesses the operation and implementation of the Raskin program to determine how well poor households are served by the program and the overall cost of program resources. The note provides quantitative analysis of the coverage, incidence, and average benefit levels of Raskin to determine both the progressivity of the program's targeting and the adequacy of benefit levels. Qualitative information on program delivery and program operations will also shed light on areas for reform. An evidence-based appraisal of the household-based transfer currently consuming over 50 percent of the entire social assistance budget envelope can provide inputs to the Government of Indonesia (GOI) as it continues to try to achieve both Pro-Poor development for all Indonesians and the Millennium Development Goals (MDGs).