Long-Term Effects of PROSPERA on Welfare

The long-term effects of Mexico's conditional cash transfer program, PROSPERA, on poor households are of great interest to policy makers and academics alike. This paper analyzes the long-term effects on the welfare of the original participant...

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Main Authors:	Aguilar, Arturo, Barnard, Cristina, De Giorgi, Giacomo
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	CONDITIONAL CASH TRANSFER WELFARE EFFECTS LABOR MARKET LABOR FORCE MOBILITY EDUCATIONAL ATTAINMENT EMPLOYMENT INTERGENERATIONAL MOBILITY HUMAN CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/423621568052375850/Long-Term-Effects-of-PROSPERA-on-Welfare http://hdl.handle.net/10986/32376

id	okr-10986-32376
recordtype	oai_dc
spelling	okr-10986-323762022-09-20T00:14:57Z Long-Term Effects of PROSPERA on Welfare Aguilar, Arturo Barnard, Cristina De Giorgi, Giacomo CONDITIONAL CASH TRANSFER WELFARE EFFECTS LABOR MARKET LABOR FORCE MOBILITY EDUCATIONAL ATTAINMENT EMPLOYMENT INTERGENERATIONAL MOBILITY HUMAN CAPITAL The long-term effects of Mexico's conditional cash transfer program, PROSPERA, on poor households are of great interest to policy makers and academics alike. This paper analyzes the long-term effects on the welfare of the original participant households and their offspring, about 20 years after the inception of the program. To complement other studies that look into the effects on schooling and health, the analysis focuses on a utilitarian definition of welfare and employs two empirical strategies. The first uses the 1997-2000 experiment as the cleanest, albeit limited, source of variation. The analysis finds that by 2017–18, the offspring of original beneficiary households are more likely to have formed their own households, to have migrated to different localities, and to have more durable assets and larger consumption expenditures than their control counterpart. The second strategy confirms and expands those findings using a difference-in-difference methodology based on the localities' rollout of the program and the age of the individuals, as a proxy of exposure. This second approach covers a much larger and representative sample, while also directly observing self-reported vulnerability in food consumption. The findings confirm the generally positive outlook in terms of durable assets and lower food vulnerability. Perhaps more interestingly and relevant for evaluating the success of the program is that it improved intergenerational mobility. Using the 1997-2000 experiment, the analysis finds that the young adults who benefited from the program improved with respect to their parents in education, assets holding, and income. They appear to be climbing the ladder of assets and income. 2019-09-12T16:31:33Z 2019-09-12T16:31:33Z 2019-09 Working Paper http://documents.worldbank.org/curated/en/423621568052375850/Long-Term-Effects-of-PROSPERA-on-Welfare http://hdl.handle.net/10986/32376 English Policy Research Working Paper;No. 9002 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CONDITIONAL CASH TRANSFER WELFARE EFFECTS LABOR MARKET LABOR FORCE MOBILITY EDUCATIONAL ATTAINMENT EMPLOYMENT INTERGENERATIONAL MOBILITY HUMAN CAPITAL
spellingShingle	CONDITIONAL CASH TRANSFER WELFARE EFFECTS LABOR MARKET LABOR FORCE MOBILITY EDUCATIONAL ATTAINMENT EMPLOYMENT INTERGENERATIONAL MOBILITY HUMAN CAPITAL Aguilar, Arturo Barnard, Cristina De Giorgi, Giacomo Long-Term Effects of PROSPERA on Welfare
geographic_facet	Latin America & Caribbean Mexico
relation	Policy Research Working Paper;No. 9002
description	The long-term effects of Mexico's conditional cash transfer program, PROSPERA, on poor households are of great interest to policy makers and academics alike. This paper analyzes the long-term effects on the welfare of the original participant households and their offspring, about 20 years after the inception of the program. To complement other studies that look into the effects on schooling and health, the analysis focuses on a utilitarian definition of welfare and employs two empirical strategies. The first uses the 1997-2000 experiment as the cleanest, albeit limited, source of variation. The analysis finds that by 2017–18, the offspring of original beneficiary households are more likely to have formed their own households, to have migrated to different localities, and to have more durable assets and larger consumption expenditures than their control counterpart. The second strategy confirms and expands those findings using a difference-in-difference methodology based on the localities' rollout of the program and the age of the individuals, as a proxy of exposure. This second approach covers a much larger and representative sample, while also directly observing self-reported vulnerability in food consumption. The findings confirm the generally positive outlook in terms of durable assets and lower food vulnerability. Perhaps more interestingly and relevant for evaluating the success of the program is that it improved intergenerational mobility. Using the 1997-2000 experiment, the analysis finds that the young adults who benefited from the program improved with respect to their parents in education, assets holding, and income. They appear to be climbing the ladder of assets and income.
format	Working Paper
author	Aguilar, Arturo Barnard, Cristina De Giorgi, Giacomo
author_facet	Aguilar, Arturo Barnard, Cristina De Giorgi, Giacomo
author_sort	Aguilar, Arturo
title	Long-Term Effects of PROSPERA on Welfare
title_short	Long-Term Effects of PROSPERA on Welfare
title_full	Long-Term Effects of PROSPERA on Welfare
title_fullStr	Long-Term Effects of PROSPERA on Welfare
title_full_unstemmed	Long-Term Effects of PROSPERA on Welfare
title_sort	long-term effects of prospera on welfare
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/423621568052375850/Long-Term-Effects-of-PROSPERA-on-Welfare http://hdl.handle.net/10986/32376
_version_	1764476413191127040

Long-Term Effects of PROSPERA on Welfare

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