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Book part
Publication date: 10 October 2017

Francisco H. G. Ferreira, Deon Filmer and Norbert Schady

Conditional cash transfers (CCT) have been adopted in many countries over the last two decades. Although the impacts of these programs have been studied extensively…

Abstract

Conditional cash transfers (CCT) have been adopted in many countries over the last two decades. Although the impacts of these programs have been studied extensively, understanding of the economic mechanisms through which cash and conditions affect household decisions remains incomplete. In particular, relatively little is known about the effects of these programs on intra-household allocation decisions. This chapter uses evidence from a program in Cambodia, where eligibility varied substantially among siblings in the same household, to illustrate these effects. A simple model of schooling decisions highlights three different effects of a child-specific CCT: an income effect, a substitution effect, and a displacement effect. The model predicts that such a CCT should unambiguously increase enrollment for eligible children, but have an ambiguous effect on ineligible siblings. The ambiguity arises from the interaction of a positive income effect with a negative displacement effect. These predictions are shown to be consistent with evidence from Cambodia, where the CESSP Scholarship Program (CSP) makes modest transfers, conditional on school enrollment for children of middle-school age. Scholarship recipients were more than 20 percentage points more likely to be enrolled in school, and 10 percentage points less likely to work for pay. However, the school enrollment and work of ineligible siblings was largely unaffected by the program. A possible fourth effect, operating through non-pecuniary spillovers of the intervention among siblings, remains largely outside the scope of the analysis, although there is some tentative evidence to suggest that it might also be at work.

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Research on Economic Inequality
Type: Book
ISBN: 978-1-78714-521-4

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Article
Publication date: 14 May 2018

Arief Anshory Yusuf

The purpose of this paper is to analyze the impact of unconditional cash transfers in Indonesia on poverty and inequality while, unlike much of the previous literature on…

Abstract

Purpose

The purpose of this paper is to analyze the impact of unconditional cash transfers in Indonesia on poverty and inequality while, unlike much of the previous literature on the welfare impact of such transfers, acknowledging that they will have both a direct effect and an economy-wide effect on the national economy.

Design/methodology/approach

The methodology used is a Computable General Equilibrium (CGE) model of the Indonesian economy. The unique feature of this model, which is very relevant in this study, is the disaggregation of households by expenditure classes; this allows for precise estimation of the distributional impact and poverty incidence.

Findings

The results suggest that, despite a large reduction in poverty, particularly in rural areas, such transfers reduce the Indonesian GDP, especially if domestically financed through increasing the value added tax of all commodities. However, the GDP reduction can be reduced by approximately half when cash transfers are financed by reducing the distortionary fuel subsidy. Moreover, cash transfers financed by reducing the fuel subsidy also reduce inequality by much more than otherwise. Various extents of the distribution of the transfers are compared, from giving them to the poorest 10 percent to distributing them equally to all households. The benefit of the transfers, in terms of reduced poverty and inequality, is found to be smaller when the author extends the beneficiaries toward the non-poor, although the economy-wide cost, in terms of the reduced GDP, is smaller.

Research limitations/implications

The CGE model used in this model is a comparative-static model that does not explicitly model the time dimension, i.e. how the impact of the transfers evolves over time. This is important if we want to know the timing of the transfers and how and when they are translated into impacts.

Practical implications

To reduce the contractionary effect of cash transfers program, government/policy makers should carefully look for appropriate financing such as from removing subsidy with pre-existing distortions like fuel subsidies.

Social implications

Government needs to carefully design cash transfers to minimize the negative indirect (economy-wide) implication for the national economy and to make sure that the transfers reach the targeted beneficiaries.

Originality/value

Few previous studies have acknowledged the indirect economy-wide effect in analyzing the impact of cash transfers. To the author’s knowledge, this has never been done before for Indonesia. Unlike previous studies, this paper is unique as it contains sensitivity analysis on how transfers can be mistargeted and reach the non-poor and looks at the implications not only for poverty and inequality but also for the rest of the economy.

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International Journal of Social Economics, vol. 45 no. 5
Type: Research Article
ISSN: 0306-8293

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Book part
Publication date: 19 May 2010

Andrea R. Ferro, Ana Lúcia Kassouf and Deborah Levison

Conditional cash transfer (CCT) programs have become widespread in poor countries as a way to alleviate current poverty and provide investments in human capital that…

Abstract

Conditional cash transfer (CCT) programs have become widespread in poor countries as a way to alleviate current poverty and provide investments in human capital that improve families’ living conditions in the long-term. The first goal is accomplished when poor families receive money from governments on a monthly basis. The second goal is reached by conditioning the cash transfers on certain behaviors such as children's regular school attendance. However, these programs may also have impacts on time use decisions within beneficiary households, particularly with respect to time spent working. Using data from 2003, we measure the impact of the Brazilian Bolsa Escola CCT program on children's and parents’ labor status using the econometric framework of policy evaluation. Probit regressions and propensity score-matching methods show that this program reduces the probability of work for children aged 6–15, increases school enrollment, and increases mother and father participation in the labor force.

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Child Labor and the Transition between School and Work
Type: Book
ISBN: 978-0-85724-001-9

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Article
Publication date: 4 June 2020

Juan Ponce and Carolina Curvale

This paper evaluates the argument that conditional cash transfer program recipients vote for the incumbent. We also test the hypothesis stating that ceasing to receive the…

Abstract

Purpose

This paper evaluates the argument that conditional cash transfer program recipients vote for the incumbent. We also test the hypothesis stating that ceasing to receive the benefit hinders support for the incumbent.

Design/methodology/approach

Using a regression discontinuity design, we assess the impact of the Bono de Desarrollo Humano cash transfer program on pro-incumbent voting of each of these four groups.

Findings

We did not find a significant impact of the transfer on pro-incumbent vote intention in any of the pairwise comparisons, which suggests that contextual factors determining retrospective voting may play an important role in shaping the relationship between pro-incumbent voting and social policy transfers.

Originality/value

Drawing on quasi-experimental evidence from Ecuador, where the eligibility criteria of the program changed exogenously, we evaluate the impacts of several treatments on pro-incumbent voting. We are able to identify four distinct groups: recipients under both eligibility criteria, nonrecipients under both criteria, new recipients and new nonrecipients.

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International Journal of Development Issues, vol. 19 no. 2
Type: Research Article
ISSN: 1446-8956

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Article
Publication date: 1 January 2021

Helena Corrales-Herrero, Martina Him Camaño, Belén Miranda-Escolar and Olga Ogando Canabal

The purpose of this paper seeks to gauge the impact of the Red de Oportunidades programme on the school attendance of children from households that participate in the programme.

Abstract

Purpose

The purpose of this paper seeks to gauge the impact of the Red de Oportunidades programme on the school attendance of children from households that participate in the programme.

Design/methodology/approach

In order to measure the impact of the programme, the authors apply propensity score matching, a quasi-experimental technique that allows us to find an appropriate control group to compare with the treatment group.

Findings

Results show that the programme does not always manage to bring into line school attendance of children from families involved in the programme with that of children from families who are not. Nevertheless, differences are still evident in terms of age, gender and geographical area.

Practical implications

Conditional cash transfer programmes should be designed carefully, taking into account a great variety of factors such as geographical characteristics, educational resources and infrastructure, not only to replicate programmes that have proved to be effective in other countries. In this sense, it seems that the impact of cash transfers on primary school attendance can be wholly attributed to the programme, implying that it is better to allocate more resources to groups in terms of age and gender where education is still not universal.

Originality/value

To the best of the authors' knowledge, this is the first time the impact of conditional cash transfers on school attendance has been examined in a country that still displays major geographical differences in terms of poverty, namely, Panama. The Red de Oportunidades programme has barely been studied.

Details

International Journal of Social Economics, vol. 48 no. 2
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 5 December 2016

Muhamed Zulkhibri

The purpose of this paper is to critically analyse the relevance of directly targeted poverty reduction programmes in Muslim countries by means of conditional cash

Abstract

Purpose

The purpose of this paper is to critically analyse the relevance of directly targeted poverty reduction programmes in Muslim countries by means of conditional cash transfers (CCTs). The paper analyses the best practices and lessons learnt to date and explores the practical issues to implement CCT poverty reduction programmes in Muslim countries.

Design/methodology/approach

The methodology is based on the qualitative assessment drawn from CCTs implementation in Muslim countries, namely Bangladesh, Indonesia, Pakistan and Turkey. The methodology also identifies the practical issues including the use of Islamic instruments to implement CCT poverty reduction programmes.

Findings

The analysis in Muslim countries suggests that CCT programmes have had a positive effect and that the costs are relatively affordable if implemented with appropriate programme designs. In many cases, there have been positive secondary effects over and above the primary goal of poverty reduction. The paper also argues that the concept of CCTs is in line with the underlying principle of Islam to eradicate poverty via cash distribution approach.

Originality/value

A decade long experience in some Muslim countries demonstrates that social cash transfers (including CCTs) have a significant impact on reducing poverty and vulnerability and promoting human development. Since none of CCT programmes in Muslim countries explore and integrate the potential of Islamic instruments (Zakat, Sadaqat, Awqaf and Qard Al-Hassan), it is timely for governments, multinational development institutions and non-profit organizations to utilize these instruments to tackling poverty.

Details

International Journal of Social Economics, vol. 43 no. 12
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 2 June 2021

Carla Tomazini

Focusing on the conditional cash transfers (CCTs) first created and implemented in Brazil and Mexico, this article takes a new look at the factors facilitating the…

Abstract

Purpose

Focusing on the conditional cash transfers (CCTs) first created and implemented in Brazil and Mexico, this article takes a new look at the factors facilitating the creation of these innovative policies. In order to shed light on the continuous struggles that are faced when pioneering, formulating and adopting these anti-poverty policies, the authors analyze three types of ambiguities: axiological, partisan and electoral.

Design/methodology/approach

Based on a gradual institutional change approach within the advocacy coalition framework, the authors conduct a qualitative analysis of semi-structured interviews, official public administration archives and newspapers.

Findings

This article demonstrates that advocacy coalitions (for human capital, basic income and food security) and the quest for electoral gains are viable contexts for exploring the complex processes involved in setting up CCTs, of which Brazil's Bolsa-Família and Mexico's Progresa-Oportunidades-Prospera (POP) provide emblematic examples.

Originality/value

The findings contribute to comparative social policy research and institutional change analysis. The coalitions and ambiguous consensuses studied here expand the perspectives with a more detailed understanding of the chaotic processes involved in developing social policies.

Details

International Journal of Sociology and Social Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-333X

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Article
Publication date: 13 February 2017

Paloma Santana Moreira Pais, Felipe de Figueiredo Silva and Evandro Camargos Teixeira

The Brazilian Government created the Bolsa Familia program to combat poverty and the insertion of so many children into the labor market. This program is an income transfer

Abstract

Purpose

The Brazilian Government created the Bolsa Familia program to combat poverty and the insertion of so many children into the labor market. This program is an income transfer program subject to certain conditions such as a minimum school attendance for children under 17 years of age. In 2006, almost half of the people with an income per capita of R$300.00 (US$139.53) per month declared that they received this benefit. Accordingly, the purpose of this paper is to analyze the impact of Bolsa Familia on child labor in Brazil in 2006.

Design/methodology/approach

The authors used a propensity score matching model with data from the National Household Sample Survey PESQUISA NACIONAL POR AMOSTRA DE DOMICÍLIOS (PNAD), for 2006.

Findings

Results indicate that the program increased the number of hours of child labor in Brazil. However, this outcome might be explained by the fact that those families who received Bolsa Familia were also those with higher socioeconomic vulnerability. Thus, they need to guarantee their survival with the income generated via child labor.

Social implications

The Brazilian Government needs to invest not only in monetary transfer policies but also in the improvement of the job market to create opportunities for the social development of children.

Originality/value

The contribution of the paper is the investigation into the effect of the Bolsa Familia program on the average time allocated to child labor; the authors find that this time allocation could be reduced by requiring a compulsory school attendance.

Details

International Journal of Social Economics, vol. 44 no. 2
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 3 June 2020

Silvana Mariano

This study addresses the importance of paid work for the autonomy of poor women in the Bolsa Família Programme (BFP), Brazil. The aim of this study is to consider the…

Abstract

Purpose

This study addresses the importance of paid work for the autonomy of poor women in the Bolsa Família Programme (BFP), Brazil. The aim of this study is to consider the influence that BFP may have on women seeking paid work, by comparing the situation and the perceptions of women who receive Bolsa Família (BF) with those of women who fall within this same profile but are not included in the programme.

Design/methodology/approach

The aim of this study is to consider the influence that BFP may have on women seeking paid work, by comparing the situation and the perceptions of women who receive Bolsa Família (BF) with those of women who fall within this same profile but are not included in the programme. Data were produced from a case study, using a non-probability sample and structured individual interviews in a large city in the south of Brazil.

Findings

CCTs designed in the moulds of the BFP, despite its relevance for alleviating poverty, do not have the potential to empower women or for their autonomy, since they do not contribute towards tackling the barriers resulting from the interaction between paid and unpaid labour, and gender determinants in this interaction.

Research limitations/implications

The methodology adopted, with content analysis, allows the collection of the research group participants’ experiences and perceptions, considering the specific nature of the material and symbolic context investigated. However, it does not allow for broad generalizations on the relation between CCT programmes and these women`s paid labour. Within the limits of the inferences produced by the content analysis, this study does enable the theories of ‘laziness’ as a risk resulting from social assistance to be dispelled.

Originality/value

Given these findings, the paper reiterates the importance of taking a critical view of the family when drafting development policies.

Details

International Journal of Sociology and Social Policy, vol. 40 no. 11/12
Type: Research Article
ISSN: 0144-333X

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Book part
Publication date: 26 August 2015

Luis Beccaria, Roxana Maurizio, Gustavo Vázquez and Manuel Espro

Latin America experienced a long period of sustained growth since 2003 that positively impacted social and labor market indicators, including poverty. This paper…

Abstract

Latin America experienced a long period of sustained growth since 2003 that positively impacted social and labor market indicators, including poverty. This paper contributes to the understanding of this process as it carries out a comparative study of poverty and indigence dynamics in five Latin American countries during 2003–2012. Specifically, it extends the analysis of a previously published study by broadening the time coverage and examining indigence mobility. It analyzes the extent to which countries with different levels of poverty (extreme poverty) incidence diverge in terms of exit and entry rates, and identifies the relative importance of the frequency and impact of events associated with poverty transitions. For this, a dynamic analysis of panel data is carried out using regular household surveys. Sizeable rates of poverty and indigence movements were observed in all five countries and it was found that a large proportion of poor or indigent households experienced positive events, mainly related to the labor market; however, only a small fraction of them actually exited poverty and indigence. It appeared, therefore, that even when the economy behaved reasonably well, high levels of labor turnover and income mobility (even of a negative nature) still prevail, mainly associated with the high level of precariousness and the undeveloped system of social protection that characterize the studied countries.

Details

Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

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