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 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.

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Bibliographic Details
Main Authors: Aguilar, Arturo, Barnard, Cristina, De Giorgi, Giacomo
Format: Working Paper biblioteca
Language:English
Published: World Bank, Washington, DC 2019-09
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
https://hdl.handle.net/10986/32376
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id dig-okr-1098632376
record_format koha
institution Banco Mundial
collection DSpace
country Estados Unidos
countrycode US
component Bibliográfico
access En linea
databasecode dig-okr
tag biblioteca
region America del Norte
libraryname Biblioteca del Banco Mundial
language English
topic CONDITIONAL CASH TRANSFER
WELFARE EFFECTS
LABOR MARKET
LABOR FORCE MOBILITY
EDUCATIONAL ATTAINMENT
EMPLOYMENT
INTERGENERATIONAL MOBILITY
HUMAN CAPITAL
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
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
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
topic_facet CONDITIONAL CASH TRANSFER
WELFARE EFFECTS
LABOR MARKET
LABOR FORCE MOBILITY
EDUCATIONAL ATTAINMENT
EMPLOYMENT
INTERGENERATIONAL MOBILITY
HUMAN CAPITAL
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 2019-09
url http://documents.worldbank.org/curated/en/423621568052375850/Long-Term-Effects-of-PROSPERA-on-Welfare
https://hdl.handle.net/10986/32376
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AT barnardcristina longtermeffectsofprosperaonwelfare
AT degiorgigiacomo longtermeffectsofprosperaonwelfare
AT aguilararturo efectosalargoplazodeprosperaenelbienestar
AT barnardcristina efectosalargoplazodeprosperaenelbienestar
AT degiorgigiacomo efectosalargoplazodeprosperaenelbienestar
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spelling dig-okr-10986323762024-06-23T06:33:09Z Long-Term Effects of PROSPERA on Welfare Efectos a largo plazo de PROSPERA en el Bienestar 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. Los efectos a largo plazo del programa de transferencias condicionales de México, PROSPERA, en los hogares pobres son de gran interés tanto para los responsables de la formulación de políticas como para los académicos. Este trabajo analiza los efectos a largo plazo en el bienestar de los hogares participantes originales y de sus descendientes, aproximadamente 20 años después del inicio del programa. Para complementar otros estudios que analizan los efectos en educación y salud, este análisis se centra en una definición utilitaria del bienestar y emplea dos estrategias empíricas para el análisis. La primera, utiliza el experimento de 1997-2000 como la fuente de variación más limpia, si bien es limitada. El análisis muestra que, para 2017-2018, los descendientes de las familias beneficiarias originales tienen mayor probabilidad de formar sus propios hogares, de emigrar a diferentes localidades y de tener más bienes duraderos y gasto en consumo que su contraparte de control. La segunda estrategia confirma y amplía estos hallazgos con el uso de una metodología de diferencias en diferencias que emplea la expansión del programa en las localidades y la edad de los individuos, como fuente de variación. Este segundo enfoque abarca una muestra mucho más amplia y representativa, y se capta información sobre vulnerabilidad autorreportada respecto al consumo de alimentos. Los resultados confirman el pronóstico positivo general en lo que respecta a bienes duraderos y menor vulnerabilidad alimentaria. Quizá lo más interesante y relevante para evaluar el éxito del programa consiste en que mejoró la movilidad intergeneracional. Con el uso del experimento de 1997-2000, el análisis muestra que los adultos jóvenes beneficiados mejoraron en términos de educación, posesión de bienes e ingresos con respecto a sus padres. Parece que los descendientes de los beneficiarios originales están mejorando su posición relativa en cuanto a bienes e ingresos. 2019-09-12T16:31:33Z 2019-09-12T16:31:33Z 2019-09 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/423621568052375850/Long-Term-Effects-of-PROSPERA-on-Welfare https://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 application/pdf application/pdf World Bank, Washington, DC