Why do the poor leave the safety net in Mexico? A study of the effects of conditionality on dropouts

Carola Álvarez, Florencia Devoto and Paul Winters ()
Additional contact information
Carola Álvarez: Inter-American Development Bank
Florencia Devoto: Inter-American Development Bank
Paul Winters: Department of Economics, American University

No 2006-10, Working Papers from American University, Department of Economics

Abstract: This paper analyzes the characteristics of beneficiaries that drop out of the Mexican conditional cash transfer program Oportunidades to determine if dropping out of the program is a result of selftargeting by the non-poor, the exclusion of the target poor population or a combination of both. The analysis, which uses a duration model, indicates that it is the wealthier beneficiaries that have greater odds of dropping out suggesting that conditionality acts as a screening device. Results also indicate that administrative factors and the particular provider of health services to beneficiaries have an important influence on dropouts.

Keywords: Cash transfer programs; conditionality; Oportunidades; Latin America; Mexico; hazard models (search for similar items in EconPapers)
JEL-codes: I30 O22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 2006-05
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http://www.american.edu/cas/econ/workingpapers/2006-10.pdf First version, 2006 (application/pdf)

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Persistent link: http://EconPapers.repec.org/RePEc:amu:wpaper:1006

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