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Cash, Conditions and Child Development: Experimental Evidence from a Cash Transfer in Honduras

Author

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  • Lopez Boo, Florencia
Abstract
We explore the effects of a randomly assigned conditional cash transfer in Honduras (Bono 10000) on early childhood development. We find significant impacts on cognitive development in children 0-60 months, with an average effect size of 0.13 SD. We show differential impacts by type of transfer: 0-5-year-old children from families receiving the “health” transfer, which targeted families with 0-5-year-old children only, benefited significantly from the program, whereas 0-5 year-olds in families receiving the “education” transfer, which targeted 6-18 year-olds, perceived no benefit. In comparison with other programs, the effect of this impact is sizeable (0.34 SD on average). Although the overall program appears to have slightly changed some behaviors that might affect children (i.e. decreased probability of maternal employment, and increased maternal self-esteem), we did not find heterogenous impacts of the Bono across these variables. Results are explained mainly by differences in conditions: while the “education” component imposed conditions only on children of schooling age, the “health” transfer required regular health checkups of 0-5 year old children. The “health” transfer families were more likely to attend health checkups, which may have induced behavior changes that improved children’s health and cognitive development, including purchasing more nutritious food. These results imply that cash without well-targeted conditions attached, might not be as effective for the development of young children.

Suggested Citation

  • Lopez Boo, Florencia, 2018. "Cash, Conditions and Child Development: Experimental Evidence from a Cash Transfer in Honduras," IDB Publications (Working Papers) 9265, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:9265
    DOI: http://dx.doi.org/10.18235/0001397
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    References listed on IDEAS

    as
    1. Galiani, Sebastian & McEwan, Patrick J., 2013. "The heterogeneous impact of conditional cash transfers," Journal of Public Economics, Elsevier, vol. 103(C), pages 85-96.
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    17. Karen Macours & Norbert Schady & Renos Vakis, 2012. "Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood: Evidence from a Randomized Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 247-273, April.
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    Cited by:

    1. Attanasio, Orazio P. & Lopez Boo, Florencia & Perez-Lopez, Diana & Reynolds, Sarah Anne, 2023. "Inequality in the Early Years in LAC: A Comparative Study of Size, Persistence, and Policies," IDB Publications (Working Papers) 13316, Inter-American Development Bank.
    2. Premand, Patrick & Barry, Oumar, 2022. "Behavioral change promotion, cash transfers and early childhood development: Experimental evidence from a government program in a low-income setting," Journal of Development Economics, Elsevier, vol. 158(C).
    3. McGuire, Joel & Kaiser, Caspar & Bach-Mortensen, Anders, 2020. "The impact of cash transfers on subjective well-being and mental health in low- and middle- income countries: A systematic review and meta-analysis," SocArXiv ydr54, Center for Open Science.
    4. Hojman, Andrés & Lopez Boo, Florencia, 2022. "Public childcare benefits children and mothers: Evidence from a nationwide experiment in a developing country," Journal of Public Economics, Elsevier, vol. 212(C).

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    More about this item

    Keywords

    children; honduras; Education; early childhood development; conditional cash transfers (CCTs); health; Impact Evaluation;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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