Publication: Conditional, Unconditional and Everything in Between : A Systematic Review of the Effects of Cash Transfer Programs on Schooling Outcomes
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Date
2014-03-06
ISSN
1943-9342
Published
2014-03-06
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Cash transfer programmes are a popular social protection tool in developing countries that aim, among other things, to improve education outcomes in developing countries. The debate over whether these programmes should include conditions has been at the forefront of recent policy discussions. This systematic review aims to complement the existing evidence on the effectiveness of these programmes in improving schooling outcomes and help inform the debate surrounding the design of cash transfer programmes. Using data from 75 reports that cover 35 different studies, the authors find that both conditional cash transfers (CCTs) and unconditional cash transfers (UCTs) improve the odds of being enrolled in and attending school compared to no cash transfer programme. The effect sizes for enrolment and attendance are always larger for CCTs compared to UCTs, but the difference is not statistically significant. When programmes are categorised as having no schooling conditions, having some conditions with minimal monitoring and enforcement and having explicit conditions that are monitored and enforced, a much clearer pattern emerges whereby programmes that are explicitly conditional, monitor compliance and penalise non-compliance have substantively larger effects (60% improvement in odds of enrolment). Unlike enrolment and attendance, the effectiveness of cash transfer programmes on improving test scores is small at best. More research is needed that examines longer-term outcomes such as test scores and, more generally, evaluating the impacts of UCTs.
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Publication The Effects of Cash Transfers on Adult Labor Market Outcomes(World Bank, Washington, DC, 2018-04)The basic economic model of labor supply has a very clear prediction of what should be expected when an adult receives an unexpected cash windfall: they should work less and earn less. This intuition underlies concerns that many types of cash transfers, ranging from government benefits to migrant remittances, will undermine work ethics and make recipients lazy. This paper discusses a range of additional channels to this simple labor-leisure trade-off that can make this intuition misleading in low- and middle-income countries, including missing markets, price effects from conditions attached to transfers, and dynamic and general equilibrium effects. The paper uses this as a lens through which to examine the evidence on the adult labor market impacts of a wide range of cash transfer programs: government transfers, charitable giving and humanitarian transfers, remittances, cash assistance for job search, cash transfers for business start-up, and bundled interventions. Overall, cash transfers that are made without an explicit employment focus (such as conditional and unconditional cash transfers and remittances) tend to result in little to no change in adult labor. The main exceptions are transfers to the elderly and some refugees, who reduce work. In contrast, transfers made for job search assistance or business start-up tend to increase adult labor supply and earnings, with the likely main channels being the alleviation of liquidity and risk constraints.Publication The Short-Term Impacts of a Schooling Conditional Cash Transfer Program on the Sexual Behavior of Young Women(2009-10-01)Recent evidence suggests that conditional cash transfer programs for schooling are effective in raising school enrollment and attendance. However, there is also reason to believe that such programs can affect other outcomes, such as the sexual behavior of their young beneficiaries. Zomba Cash Transfer Program is a randomized, ongoing conditional cash transfer intervention targeting young women in Malawi that provides incentives (in the form of school fees and cash transfers) to current schoolgirls and recent dropouts to stay in or return to school. An average offer of US$10/month conditional on satisfactory school attendance plus direct payment of secondary school fees led to significant declines in early marriage, teenage pregnancy, and self-reported sexual activity among program beneficiaries after just one year of program implementation. For program beneficiaries who were out of school at baseline, the probability of getting married and becoming pregnant declined by more than 40 percent and 30 percent, respectively. In addition, the incidence of the onset of sexual activity was 38 percent lower among all program beneficiaries than the control group. Overall, these results suggest that conditional cash transfer programs not only serve as useful tools for improving school attendance, but may also reduce sexual activity, teen pregnancy, and early marriage.Publication The Short-Term Impacts of a Schooling Conditional Cash Transfer Program on the Sexual Behavior of Young Women(2010)Recent evidence suggests that conditional cash transfer (CCT) programs for schooling are effective in raising school enrolment and attendance. However, there is also reason to believe that such programs can affect other outcomes, such as the sexual behavior of their young beneficiaries. Zomba Cash Transfer Program is a randomized ongoing CCT intervention targeting young women in Malawi that provides incentives (in the form of school fees and cash transfers) to current schoolgirls and recent dropouts to stay in or return to school. An average offer of US$ 10/month conditional on satisfactory school attendance--plus direct payment of secondary school fees--led to significant declines in early marriage, teenage pregnancy, and self-reported sexual activity among program beneficiaries after just one year of program implementation. For program beneficiaries who were out of school at baseline, the probability of getting married and becoming pregnant declined by more than 40 and 30%, respectively. In addition, the incidence of the onset of sexual activity was 38% lower among all program beneficiaries than the control group. Overall, these results suggest that CCT programs not only serve as useful tools for improving school attendance but may also reduce sexual activity, teen pregnancy, and early marriage.Publication Cash or Condition? Evidence from a Cash Transfer Experiment(2010-03-01)Conditional Cash Transfer programs are "...the world's favorite new anti-poverty device," (The Economist, July 29 2010) yet little is known about the specific role of the conditions in driving their success. In this paper, we evaluate a unique cash transfer experiment targeted at adolescent girls in Malawi that featured both a conditional (CCT) and an unconditional (UCT) treatment arm. We find that while there was a modest improvement in school enrollment in the UCT arm in comparison to the control group, this increase is only 43 percent as large as the CCT arm. The CCT arm also outperformed the UCT arm in tests of English reading comprehension. The schooling condition, however, proved costly for important non-schooling outcomes: teenage pregnancy and marriage rates were substantially higher in the CCT than the UCT arm. Our findings suggest that a CCT program for early adolescents that transitions into a UCT for older teenagers would minimize this trade-off by improving schooling outcomes while avoiding the adverse impacts of conditionality on teenage pregnancy and marriage.Publication Designing Cost-Effective Cash Transfer Programs to Boost Schooling among Young Women in Sub-Saharan Africa(2009-10-01)As of 2007, 29 developing countries had some type of conditional cash transfer program in place, with many others planning or piloting one. However, the evidence base needed by a government to decide how to design a new conditional cash transfer program is severely limited in a number of critical dimensions. This paper presents one-year schooling impacts from a conditional cash transfer experiment among teenage girls and young women in Malawi, which was designed to address these shortcomings: conditionality status, size of separate transfers to the schoolgirl and the parent, and village-level saturation of treatment were all independently randomized. The authors find that the program had large impacts on school attendance: the re-enrollment rate among those who had already dropped out of school before the start of the program increased by two and a half times and the dropout rate among those in school at baseline decreased from 11 to 6 percent. These impacts were, on average, similar in the conditional and the unconditional treatment arms. Although most schooling outcomes examined here were unresponsive to variation in the size of the transfer to the parents, higher transfers given directly to the schoolgirls were associated with significantly improved school attendance and progress - but only if the transfers were conditional on school attendance. There were no spillover effects within treatment communities after the first year of program implementation. Policymakers looking to design cost-effective cash transfer programs targeted toward young women should note the relative insensitivity of these short-term program impacts with respect to conditionality and total transfer size.
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