Beyond the Income Effect : Impacts of Conditional Cash Transfer Programs on Private Investments in Human Capital
In the past decade, conditional cash transfer (CCT) programs have become an important component of social policy in developing countries. While the impacts of these programs have been well researched with respect to their effectiveness to achieve i...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/05/19520425/beyond-income-effect-impacts-conditional-cash-transfer-programs-private-investments-human-capital http://hdl.handle.net/10986/18807 |
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okr-10986-188072021-04-23T14:03:49Z Beyond the Income Effect : Impacts of Conditional Cash Transfer Programs on Private Investments in Human Capital Cruz, Marcio Ziegelhofer, Zacharias AFFILIATED ORGANIZATIONS AGED AGRICULTURE BANK ACCOUNT BENEFICIARIES BENEFICIARY BOLSA BREASTFEEDING BUDGET CONSTRAINT BUDGETING CAPITAL FORMATION CAPITAL INVESTMENTS CASH TRANSFER CENTRAL BANK CHECKS CHILD LABOR CHILD NUTRITION COMPLEMENTARY INPUTS COMPLEMENTARY INVESTMENTS CONSUMER PRICE INDEX CONSUMERS CREDIT CARD CREDIT CONSTRAINT CREDIT MARKET CREDIT MARKETS DECISION MAKING DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNT RATES DUMMY VARIABLES DURABLES ECONOMIC DEVELOPMENT ELASTICITY OF SUBSTITUTION ENFORCEMENT MECHANISM ENGEL CURVE ENGEL CURVES EQUATIONS EXCHANGE RATE EXPECTED UTILITY EXPENDITURE EXPENDITURES EXTERNALITIES EXTREME POVERTY FAMILIES FEMALE FRAUD GDP GDP PER CAPITA GENDER HEALTH CARE HEALTH EDUCATION HEALTH SERVICES HOSPITALS HOUSEHOLD BARGAINING HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLDS HOUSING HOUSING HYGIENE HUMAN CAPITAL HYGIENE IMMUNIZATION INCOME INCOME EFFECT INCOME VOLATILITY INFLATION INFLATION INDEX INSTRUMENT INSURANCE INTEREST RATE INTERNATIONAL BANK INTERVENTION INVESTMENT BEHAVIORS INVESTMENT FUNCTION LABOR MARKET LIVING CONDITIONS BOLSA FAMíLIA PROGRAM HOUSEHOLD EXPENDITURE REGRESSION DISCONTINUITY DESIGN ADOLESCENTS In the past decade, conditional cash transfer (CCT) programs have become an important component of social policy in developing countries. While the impacts of these programs have been well researched with respect to their effectiveness to achieve intended outcomes, less is known about their impact on private expenditure decisions. This aspect has great policy relevance since changes in private household expenditures can either support or counteract the aim of the programs. This essay investigates the impact of a CCT program on private household expenditure decisions in nutrition, health and education which are seen as principal contributors to child human capital. First, household expenditure behavior under a CCT program is discussed based on Heckman's model on the technology of skill formation as a conceptual framework. The paper shows how intra-household preferences and perceptions on the substitutability or complementarity of investments can impact household resource allocation decisions. Subsequently, the theoretical implications are tested in the context of the Brazilian CCT program Bolsa Família, using the Brazilian household expenditure survey. Evidence is found that households increase their private expenditure in food and education disproportionally to the amount of cash transfer, that is, more than would be expected when considering the Engel curves of the expenditures under question. 2014-06-26T22:22:12Z 2014-06-26T22:22:12Z 2014-05 http://documents.worldbank.org/curated/en/2014/05/19520425/beyond-income-effect-impacts-conditional-cash-transfer-programs-private-investments-human-capital http://hdl.handle.net/10986/18807 English en_US Policy Research Working Paper;No. 6867 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Brazil |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AFFILIATED ORGANIZATIONS AGED AGRICULTURE BANK ACCOUNT BENEFICIARIES BENEFICIARY BOLSA BREASTFEEDING BUDGET CONSTRAINT BUDGETING CAPITAL FORMATION CAPITAL INVESTMENTS CASH TRANSFER CENTRAL BANK CHECKS CHILD LABOR CHILD NUTRITION COMPLEMENTARY INPUTS COMPLEMENTARY INVESTMENTS CONSUMER PRICE INDEX CONSUMERS CREDIT CARD CREDIT CONSTRAINT CREDIT MARKET CREDIT MARKETS DECISION MAKING DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNT RATES DUMMY VARIABLES DURABLES ECONOMIC DEVELOPMENT ELASTICITY OF SUBSTITUTION ENFORCEMENT MECHANISM ENGEL CURVE ENGEL CURVES EQUATIONS EXCHANGE RATE EXPECTED UTILITY EXPENDITURE EXPENDITURES EXTERNALITIES EXTREME POVERTY FAMILIES FEMALE FRAUD GDP GDP PER CAPITA GENDER HEALTH CARE HEALTH EDUCATION HEALTH SERVICES HOSPITALS HOUSEHOLD BARGAINING HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLDS HOUSING HOUSING HYGIENE HUMAN CAPITAL HYGIENE IMMUNIZATION INCOME INCOME EFFECT INCOME VOLATILITY INFLATION INFLATION INDEX INSTRUMENT INSURANCE INTEREST RATE INTERNATIONAL BANK INTERVENTION INVESTMENT BEHAVIORS INVESTMENT FUNCTION LABOR MARKET LIVING CONDITIONS BOLSA FAMíLIA PROGRAM HOUSEHOLD EXPENDITURE REGRESSION DISCONTINUITY DESIGN ADOLESCENTS |
| spellingShingle |
AFFILIATED ORGANIZATIONS AGED AGRICULTURE BANK ACCOUNT BENEFICIARIES BENEFICIARY BOLSA BREASTFEEDING BUDGET CONSTRAINT BUDGETING CAPITAL FORMATION CAPITAL INVESTMENTS CASH TRANSFER CENTRAL BANK CHECKS CHILD LABOR CHILD NUTRITION COMPLEMENTARY INPUTS COMPLEMENTARY INVESTMENTS CONSUMER PRICE INDEX CONSUMERS CREDIT CARD CREDIT CONSTRAINT CREDIT MARKET CREDIT MARKETS DECISION MAKING DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DISCOUNT RATES DUMMY VARIABLES DURABLES ECONOMIC DEVELOPMENT ELASTICITY OF SUBSTITUTION ENFORCEMENT MECHANISM ENGEL CURVE ENGEL CURVES EQUATIONS EXCHANGE RATE EXPECTED UTILITY EXPENDITURE EXPENDITURES EXTERNALITIES EXTREME POVERTY FAMILIES FEMALE FRAUD GDP GDP PER CAPITA GENDER HEALTH CARE HEALTH EDUCATION HEALTH SERVICES HOSPITALS HOUSEHOLD BARGAINING HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLDS HOUSING HOUSING HYGIENE HUMAN CAPITAL HYGIENE IMMUNIZATION INCOME INCOME EFFECT INCOME VOLATILITY INFLATION INFLATION INDEX INSTRUMENT INSURANCE INTEREST RATE INTERNATIONAL BANK INTERVENTION INVESTMENT BEHAVIORS INVESTMENT FUNCTION LABOR MARKET LIVING CONDITIONS BOLSA FAMíLIA PROGRAM HOUSEHOLD EXPENDITURE REGRESSION DISCONTINUITY DESIGN ADOLESCENTS Cruz, Marcio Ziegelhofer, Zacharias Beyond the Income Effect : Impacts of Conditional Cash Transfer Programs on Private Investments in Human Capital |
| geographic_facet |
Latin America & Caribbean Brazil |
| relation |
Policy Research Working Paper;No. 6867 |
| description |
In the past decade, conditional cash
transfer (CCT) programs have become an important component
of social policy in developing countries. While the impacts
of these programs have been well researched with respect to
their effectiveness to achieve intended outcomes, less is
known about their impact on private expenditure decisions.
This aspect has great policy relevance since changes in
private household expenditures can either support or
counteract the aim of the programs. This essay investigates
the impact of a CCT program on private household expenditure
decisions in nutrition, health and education which are seen
as principal contributors to child human capital. First,
household expenditure behavior under a CCT program is
discussed based on Heckman's model on the technology of
skill formation as a conceptual framework. The paper shows
how intra-household preferences and perceptions on the
substitutability or complementarity of investments can
impact household resource allocation decisions.
Subsequently, the theoretical implications are tested in the
context of the Brazilian CCT program Bolsa Família, using
the Brazilian household expenditure survey. Evidence is
found that households increase their private expenditure in
food and education disproportionally to the amount of cash
transfer, that is, more than would be expected when
considering the Engel curves of the expenditures under question. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Cruz, Marcio Ziegelhofer, Zacharias |
| author_facet |
Cruz, Marcio Ziegelhofer, Zacharias |
| author_sort |
Cruz, Marcio |
| title |
Beyond the Income Effect : Impacts of Conditional Cash Transfer Programs on Private Investments in Human Capital |
| title_short |
Beyond the Income Effect : Impacts of Conditional Cash Transfer Programs on Private Investments in Human Capital |
| title_full |
Beyond the Income Effect : Impacts of Conditional Cash Transfer Programs on Private Investments in Human Capital |
| title_fullStr |
Beyond the Income Effect : Impacts of Conditional Cash Transfer Programs on Private Investments in Human Capital |
| title_full_unstemmed |
Beyond the Income Effect : Impacts of Conditional Cash Transfer Programs on Private Investments in Human Capital |
| title_sort |
beyond the income effect : impacts of conditional cash transfer programs on private investments in human capital |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/05/19520425/beyond-income-effect-impacts-conditional-cash-transfer-programs-private-investments-human-capital http://hdl.handle.net/10986/18807 |
| _version_ |
1764442744344805376 |