Conditional Cash Transfers, Adult Work Incentives, and Poverty

Conditional cash transfer (CCT) programs aim to alleviate poverty through monetary and in-kind benefits, as well as reduce future levels of poverty by encouraging investments in education, health, and nutrition. The success of CCT programs at reducing poverty depends on whether, and the extent to which, cash transfers affect adult work incentives. The authors examine whether the PROGRESA program of Mexico affects adult participation in the labor market and overall adult leisure time, and they link these effects to the impact of the program on poverty. Using the experimental design of PROGRESA's evaluation sample, the authors find that the program does not have any significant effect on adult labor force participation and leisure time. Their 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.

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Bibliographic Details
Main Authors: Skoufias, Emmanuel, di Maro, Vincenzo
Format: Policy Research Working Paper biblioteca
Language:English
Published: World Bank, Washington, DC 2006-08
Subjects:AGRICULTURAL WORKERS, BASIC FOOD BASKET, BENEFICIARIES, BENEFICIARY FAMILIES, BENEFICIARY HOUSEHOLDS, BREAST-FEEDING, CASH TRANSFER PROGRAM, CASH TRANSFERS, CLINICS, CONSUMER PRICE INDEX, CONSUMPTION EXPENDITURES, CONSUMPTION PER CAPITA, CONTROL GROUPS, CURRENT POVERTY, DEPENDENT CHILDREN, DEVELOPING COUNTRIES, DISSEMINATION, EDUCATION, EXPERIMENTAL DESIGN, EXTREME POVERTY, FOOD BASKET, FOOD PREPARATION, GEOGRAPHIC TARGETING, GOVERNMENT PROGRAMS, GROSS DOMESTIC PRODUCT, HEALTH, HEALTH CARE, HEALTH CARE PROFESSIONALS, HEALTH INFRASTRUCTURE, HOUSEHOLD CONSUMPTION, HOUSEHOLD INCOME, HOUSEHOLD LEVEL, HOUSEHOLD POVERTY, HOUSEHOLD SURVEYS, HYGIENE, IMPACT EVALUATION, IMPACT ON POVERTY, INCIDENCE OF POVERTY, INCOME, INCOME TRANSFERS, INDIGENOUS PEOPLE, INTERVENTION, INVESTMENTS IN EDUCATION, LABOR FORCE, LABOR MARKET, LABOR SUPPLY, LEISURE TIME, LEVEL OF EDUCATION, LEVEL OF POVERTY, MACROECONOMIC SHOCKS, MALNUTRITION, MARITAL STATUS, MEANS TESTING, MINISTRY OF HEALTH, NUMBER OF CHILDREN, NUMBER OF HOUSEHOLDS, NURSE, NUTRITION, NUTRITIONAL STATUS, PARTICIPATION OF WOMEN, PARTICIPATION RATES, PENSIONS, PER CAPITA CONSUMPTION, PER CAPITA INCOME, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POOR, POOR COMMUNITIES, POOR HOUSEHOLDS, POOR INDIVIDUALS, POOR POPULATION, POOR RURAL AREAS, POOR RURAL COMMUNITIES, POVERTY ALLEVIATION, POVERTY GAP, POVERTY IMPACTS, POVERTY INDEX, POVERTY INDICES, POVERTY LINE, POVERTY LINES, POVERTY MEASURES, POVERTY RATE, POVERTY RATES, POVERTY REDUCTION, PREGNANT WOMEN, PROGRAM IMPLEMENTATION, REDUCTION IN POVERTY, RURAL, RURAL AREAS, RURAL COMMUNITIES, RURAL SECTOR, SCHOOL ATTENDANCE, SCHOOL-AGE CHILDREN, SCHOOLING, SOCIAL SECURITY, SOCIOECONOMIC STATUS, SPILLOVER, TARGETING, TRANSFER PROGRAMS, TRANSPORTATION, WELFARE PROGRAMS, YOUNG CHILDREN,
Online Access:http://documents.worldbank.org/curated/en/2006/08/6941296/conditional-cash-transfers-adult-work-incentives-poverty
http://hdl.handle.net/10986/8380
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Summary:Conditional cash transfer (CCT) programs aim to alleviate poverty through monetary and in-kind benefits, as well as reduce future levels of poverty by encouraging investments in education, health, and nutrition. The success of CCT programs at reducing poverty depends on whether, and the extent to which, cash transfers affect adult work incentives. The authors examine whether the PROGRESA program of Mexico affects adult participation in the labor market and overall adult leisure time, and they link these effects to the impact of the program on poverty. Using the experimental design of PROGRESA's evaluation sample, the authors find that the program does not have any significant effect on adult labor force participation and leisure time. Their 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.