Own and sibling effects of conditional cash transfer programs : theory and evidence from Cambodia

Conditional cash transfers have been adopted by a large number of countries in the past decade. Although the impacts of these programs have been studied extensively, understanding of the economic mechanisms through which cash and conditions affect...

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Bibliographic Details
Main Authors:	Ferreira, Francisco H.G., Filmer, Deon, Schady, Norbert
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ADULTS AGE RANGES ANNUAL FEES BIASES BIRTH ORDER CAPITAL MARKETS CHILD LABOR DAILY EXPENSES DISABLED DISPOSABLE INCOME DROPOUT RATES EARNINGS ECONOMIC DEVELOPMENT EDUCATIONAL ATTAINMENT ELIGIBLE CHILD ELIGIBLE CHILDREN ELIGIBLE SCHOOLS EMPLOYMENT ENROLLMENT ENROLLMENT FOR CHILDREN ENROLLMENT OF BOYS ENROLLMENT RATES ENROLMENTS ETHNIC MINORITIES EXAM EXPENDITURES FAMILIES FAMILY BUDGETS FAMILY INCOME FEMALE SCHOOLING FUTURE RESEARCH GENDER GIRLS GIRLS INTO SCHOOL HEAD-TEACHERS HIGH DROPOUT HOUSEHOLD INCOME HOUSEHOLD WELFARE HOUSEHOLDS HUMAN CAPITAL HUMAN DEVELOPMENT HUMAN RESOURCES INEQUALITY INTERNATIONAL BANK LABOR MARKET LATRINE LITERATURE MIDDLE SCHOOLS MINISTRY OF EDUCATION NUMBER OF SCHOOLS NUMBER OF STUDENTS NUTRITION PAPERS PARENTAL EDUCATION PRIMARY SCHOOL PRIMARY-SCHOOL PUBLIC SCHOOL RADIO REGISTRATION FEES RESEARCH INSTITUTE RETURNS TO EDUCATION RURAL AREAS SAVINGS SCHOLARSHIP SCHOLARSHIP PROGRAM SCHOLARSHIP PROGRAMS SCHOLARSHIPS SCHOOL AGE SCHOOL ATTENDANCE SCHOOL DROPOUT SCHOOL EDUCATION SCHOOL ENROLLMENT SCHOOL ENROLMENTS SCHOOL FEES SCHOOL LEVEL SCHOOL PARTICIPATION SCHOOL QUALITY SCHOOL VISITS SCHOOL YEAR SCHOOLING SECONDARY SCHOOL SMALL SCHOOLS TEACHERS WORKERS
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090717142738 http://hdl.handle.net/10986/4192

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Summary:	Conditional cash transfers have been adopted by a large number of countries in the past decade. Although the impacts of these programs have been studied extensively, understanding of the economic mechanisms through which cash and conditions affect household decisions remains incomplete. This paper uses evidence from a program in Cambodia, where eligibility varied substantially among siblings in the same household, to illustrate these effects. A model of schooling decisions highlights three different effects of a child-specific conditional cash transfer: an income effect, a substitution effect, and a displacement effect. The model predicts that such a conditional cash transfer will increase enrollment for eligible children - due to all three effects - but have an ambiguous effect on ineligible siblings. The ambiguity arises from the interaction of a positive income effect with a negative displacement effect. These predictions are shown to be consistent with evidence from Cambodia, where the child-specific program makes modest transfers, conditional on school enrollment for children of middle-school age. Scholarship recipients were more than 20 percentage points more likely to be enrolled in school and 10 percentage points less likely to work for pay. However, the school enrollment and work of ineligible siblings was largely unaffected by the program.

Own and sibling effects of conditional cash transfer programs : theory and evidence from Cambodia

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