Conditional Cash Transfers: Do They Result in More Patient Choices and Increased Educational Aspirations?

Diana Contreras Suarez and Lisa Cameron

Economic Development and Cultural Change, 2020, vol. 68, issue 3, 729 - 761

Abstract: Conditional cash transfers (CCTs) aim to increase human capital in poor families. They do this directly through conditions but may also influence household decision-making in other ways. Using a regression discontinuity design, we test whether a large CCT program affects discounting choices and aspirations for children’s education. A greater willingness to defer consumption and desire to invest in education may result from habits formed during the program, through information received, or by the relaxation of the budget constraint. However, we find no evidence of such impacts, which limits the long-term impacts of such programs if the transfers were to cease.

Date: 2020
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