Conditional Cash Transfers, Adult Work Incentives, and Poverty
Conditional cash transfer (CCT) programmes aim to alleviate poverty through monetary and in-kind benefits, as well as reduce future incidence of poverty by encouraging investments in education, health and nutrition. The success of CCT programmes at reducing poverty depends on whether, and the extent to which, cash transfers affect adult work incentives. In this paper we examine whether the PROGRESA programme of Mexico affects adult participation in the labour market and overall adult leisure time, and we link these effects to the impact of the programme on poverty. Utilising the experimental design of PROGRESA's evaluation sample, we find that the programme does not have any significant effect on adult labour force participation and leisure time. Our findings on adult work incentives are reinforced further by the result that PROGRESA leads to a substantial reduction in poverty. The poverty reduction effects are stronger for the poverty gap and severity of poverty measures.
| Main Authors: | , |
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| Format: | Journal Article biblioteca |
| Language: | EN |
| Published: |
2008
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| Subjects: | Taxation and Subsidies: Externalities, Redistributive Effects, Environmental Taxes and Subsidies H230, Health: Government Policy, Regulation, Public Health I180, Education: Government Policy I280, Measurement and Analysis of Poverty I320, Welfare and Poverty: Government Programs, Provision and Effects of Welfare Programs I380, Time Allocation and Labor Supply J220, Economic Development: Human Resources, Human Development, Income Distribution, Migration O150, |
| Online Access: | http://hdl.handle.net/10986/4949 |
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