Can Cash Transfers Help Households Escape an Inter-Generational Poverty Trap?
M. Caridad Araujo (),
Mariano Bosch () and
No 22670, NBER Working Papers from National Bureau of Economic Research, Inc
Many poor households in developing countries are liquidity-constrained. As a result, they may under-invest in the human capital of their children. We provide new evidence on the long-term (10-year) effects of cash transfers using data from Ecuador. Our analysis is based on two separate sources of data and two identification strategies. First, we extend the results from an experiment that randomly assigned children under the age of 6 years to “early” or “late” treatment groups. Although the early treatment group received twice as much in transfers, we find no difference between children in the two groups on performance on a large number of tests. Second, we use a regression discontinuity design exploiting the fact that a “poverty index” was used to determine eligibility for transfers. We focus on children who were just-eligible and just-ineligible for transfers when they were in late childhood, and compare their school attainment and work status 10 years later. Transfers increased secondary school completion, but the effects are small, between 1 and 2 percentage points from a counterfactual school completion rate of 75 percent. We conclude that any effect of cash transfers on the inter-generational transmission of poverty in Ecuador is likely to be modest.
JEL-codes: I3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-exp and nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Published as Can Cash Transfers Help Households Escape an Intergenerational Poverty Trap? , M. Caridad Araujo, Mariano Bosch, Norbert Schady. in The Economics of Poverty Traps , Barrett, Carter, and Chavas. 2019
Downloads: (external link)
Working Paper: Can Cash Transfers Help Households Escape an Inter-Generational Poverty Trap? (2020)
Chapter: Can Cash Transfers Help Households Escape an Intergenerational Poverty Trap? (2017)
Working Paper: Can Cash Transfers Help Households Escape an Inter-Generational Poverty Trap? (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:22670
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().