Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood : Evidence from a Randomized Experiment

A variety of theories of skill formation suggest that investments in schooling and other dimensions of human capital will have lower returns if children do not have adequate levels of cognitive and social skills at an early age. This paper analyzes the impact of a randomized cash transfer program on cognitive development in early childhood in rural Nicaragua. It shows that the program had significant effects on cognitive outcomes, especially language. Impacts are larger for older pre-school age children, who are also more likely to be delayed. The program increased intake of nutrient-rich foods, early stimulation, and use of preventive health care-all of which have been identified as risk factors for development in early childhood. Households increased expenditures on these inputs more than can be accounted for by the increases in cash income only, suggesting that the program changed parents' behavior. The findings suggest that gains in early childhood development outcomes should be taken into account when assessing the benefits of cash transfer programs in developing countries. More broadly, the paper illustrates that gains in early childhood development can result from interventions that facilitate investments made by parents to reduce risk factors for cognitive development.

Bibliographic Details

Main Authors:	Macours, Karen, Schady, Norbert, Vakis, Renos
Language:	English
Published:	World Bank, Washington, DC 2008-10
Subjects:	ACCESS TO PRESCHOOL, ACCOUNT, ACHIEVEMENT, AGE GROUPS, AGE TRENDS, AGED, ATTENDANCE REQUIREMENT, AVAILABILITY OF BOOKS, BASIC TRAINING, BEHAVIOR PROBLEMS, BEHAVIORAL PROBLEMS, BREASTFEEDING, CAREGIVERS, CHILD CARE, CHILD DEVELOPMENT, CHILD DEVELOPMENT PROGRAMS, CHILD HEALTH, CHILD LABOR, CHILD MALNUTRITION, CHILD NUTRITION, COGNITIVE DEVELOPMENT, COGNITIVE OUTCOMES, CONTROL GROUPS, DEPRESSION, DEVELOPMENTAL POTENTIAL, DEVELOPMENTAL SCREENING, DIETS, DISADVANTAGED CHILDREN, EARLY CHILDHOOD, EARLY CHILDHOOD DEVELOPMENT, EARLY CHILDHOOD EDUCATION, EARLY INTERVENTION, EARLY STIMULATION, EDUCATION PROGRAMS, ENROLLMENT, EPIDEMIOLOGY, FAMILIES, GENDER, GENDER DIFFERENCES, GIRLS, HEALTH CARE, HEALTH OUTCOMES, HUMAN DEVELOPMENT, HYGIENE, INFANCY, INFANTS, INFERENCE, INTERVENTION, INTERVENTIONS, IRON, LANGUAGE DEVELOPMENT, LANGUAGE SKILLS, LIVING STANDARDS, MEMORY, MENTAL, MENTAL HEALTH, MIGRATION, MOTOR SKILLS, NUTRITION, NUTRITIONAL STATUS, OLDER CHILDREN, ONLY CHILDREN, PARENTAL EDUCATION, PARENTING, PEDIATRICS, POPULATION STUDIES, POSTNATAL DEPRESSION, PRESCHOOL CHILDREN, PRESCHOOLERS, PREVENTIVE HEALTH CARE, PRIMARY EDUCATION, PRIMARY HEALTH CARE, PRIMARY SCHOOL, PRIMARY SCHOOL PERFORMANCE, PSYCHOLOGY, PUBLIC HEALTH, READING, RECALL, RECOGNITION, RISK FACTORS, RURAL AREAS, SCHOOL AGE CHILDREN, SCHOOLING, SKILL TRAINING, SOCIAL MARKETING, SOCIAL PROTECTION, SOCIAL SKILLS, VACCINATION, VERY YOUNG CHILDREN, VITAMINS, VOCATIONAL TRAINING, WAGES, YOUNG CHILDREN, YOUNGER CHILDREN,
Online Access:	http://documents.worldbank.org/curated/en/2008/10/9971523/cash-transfers-behavioral-changes-cognitive-development-early-childhood-evidence-randomized-experiment https://hdl.handle.net/10986/6926
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