Can poverty alleviation programs crowd-in private support? Short- and Middle-Run Effects of a Conditional Cash Transfer Program on Inter-Household Transfers

2020 ◽  
pp. 1-22 ◽  
Author(s):  
SANDRA GARCÍA ◽  
JORGE CUARTAS

Abstract Conditional cash transfer (CCT) programs have become an important component of social assistance in developing countries. CCTs, as well as other cash subsidies, have been criticized for allegedly crowding out private transfers. Whether social programs crowd out private transfers is an important question with worrisome implications, as private support represents an important fraction of households’ income and works as a risk sharing mechanism in developing countries. Furthermore, empirical evidence on the effect of public transfers on private transfers is mixed. This paper contributes to the literature by using a unique dataset from the quasi-experimental evaluation of a CCT in Colombia and an empirical strategy that allows us to correct for pre-existing differences between treated and control groups. Our results suggest that the public transfer did not crowd out private transfers, neither in the short-run nor in the middle-run. Instead, it increased the probability of receiving support in cash, in kind, and in non-paid labor from different private sources by approximately 10 percentage points. Moreover, we find that the monetary value of private transfers increased by 32-38% for treated households.

INFO ARTHA ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 67-84
Author(s):  
Corry Wulandari ◽  
Nadezhda Baryshnikova

In 2005 the Government of Indonesia introduced an unconditional cash transfer program called the ‘Bantuan Langsung Tunai’ (BLT), aimed at assisting poor people who were suffering from the removal of a fuel subsidy. There are concerns, however, that the introduction of a public transfer system can negatively affect inter-household transfers through the crowding-out effect, which exists when donor households reduce the amount of their transfers in line with public transfers received from the government. The poor may not therefore have received any meaningful impact from the public cash transfer, as they potentially receive fewer transfers from inter-household private donors. For the government to design a public transfer system, it is necessary to properly understand the dynamics of private transfer behaviour. Hence, this study evaluates whether there exists a crowding-out effect of public transfers on inter-household transfers in Indonesia.Using data from the Indonesia Family Life Survey (IFLS) and by applying Coarsened Exact Matching (CEM) and Difference-in-differences (DID) approaches, this study found that the likelihood to receive transfers from other family members (non-co-resident) reduces when the household receives BLT. However, there is no significant impact of BLT on transfers from parents and friends.


2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Anelise Andrade de Souza ◽  
Sueli Aparecida Mingoti ◽  
Rômulo Paes-Sousa ◽  
Leo Heller

Abstract Background This study aims to assess the interactive effects of Brazilian public interventions, environmental health programs (access to water, sanitation and solid waste collection) and a Conditional Cash Transfer Program (PBF), on the mortality reduction due to diarrhea and malnutrition among children under 5 years old. Methods The study design is ecological, with longitudinal analysis in a balanced panel. The period covered is 2006 to 2016, including 3467 municipalities from all regions of the country, which resulted in 38,137 observations. The generalized linear models were adjusted considering the Negative Binomial (NB) distribution for the number of deaths due to malnutrition and diarrhea, with fixed effects. NB models with and without zero-inflation were assessed. Subsequent interaction models were applied to assess the combined effects of the two public policies. Results In relation to the decline of mortality rates due to diarrhea in the municipalities, positive effect modification were observed in the presence of: high coverage of the target population by the PBF and access to water, 0.54 (0.28–1.04) / 0.55 (0.29–1.04); high coverage by the total population by the PBF and access to water, 0.97 (0.95–1.00) and high coverage by the total population by the PBF and access to sanitation, 0.98 (0.97–1.00). Decline on diarrhea mortality was also observed in the joint presence of high coverage of solid waste collection and access to water, categories 1 (> 60% ≤85%): 0.98 (0.96–1.00), 0.98 (0.97–1, 00) and 2 (> 85% ≤ 100%): 0.97 (0.95–0.98), 0.97 (0.95–0.99). Negative effect modification were observed for mortality due to malnutrition in the presence of simultaneous high coverage of the total population by the PBF and access to sanitation categories 1 (≥ 20 < 50%): 1.0061 (0.9991–1.0132) and 2 (≥ 50 < 100%): 1.0073 (1.0002–1.0145) and high coverage of the total population by the PBF and solid waste collection, 1.0004 (1.0002–1.0005), resulting in malnutrition mortality rates increase. Conclusion Implementation of environmental health services and the coverage expansion by the PBF may enhance the prevention of early deaths in children under 5 years old due to diarrhea, a poverty related disease.


2021 ◽  
Author(s):  
Diether Beuermann ◽  
Andrea Ramos Bonilla ◽  
Marco Stampini

We explore whether the academic benefit from attending a preferred secondary school differs between beneficiaries and non-beneficiaries of the Jamaican Conditional Cash Transfer Program, Programme of Advancement through Health and Education (PATH). The academic outcomes assessed include end of secondary and post-secondary high-stakes examinations independently administered by the Caribbean Examinations Council. Among girls, receiving PATH benefits before secondary school enrollment does not influence the academic gains from attending a more selective school. However, boys who received PATH benefits prior to secondary school enrollment benefit significantly less from subsequently attending a more selective school with respect to comparable peers who did not receive PATH benefits. These results suggest negative dynamic interactions between PATH and selective secondary schools among boys.


Author(s):  
Armando Barrientos

This chapter examines the role that public policy initiatives—specifically anti-poverty transfers—have played in the reduction of poverty and inequality in Brazil. A number of anti-poverty initiatives are considered in turn, and not just the widely known Bolsa Familia conditional cash transfer program. The analysis establishes that such transfers—including conditional cash transfers—have proved surprisingly effective, even helping to tackle long-standing income inequality. It is recognized that explicit anti-poverty initiatives were not the only drivers of the reduced incidence of poverty and inequality: factors such as growth and improved access to labor markets also played a role. However, progress is now threatened by the recent economic and political crisis.


Author(s):  
Titus Priyo Harjatmo ◽  
Maria Poppy Herlianty ◽  
Antonius Sri Hartono

Background: The nutritional status of infants and toddlers is one indicator of public nutrition, and even has developed into one of the indicators of health and welfare. Basic Health Research (Riskesdas) in 2013 showed that 37,2% children under five suffering from nutritional status is stunting. One of the efforts that have been made by the Indonesian government to reduce malnutrition in infants and toddlers is through a program that is integrated with the health sector namely Conditional Cash Transfer Program (Program Keluarga Harapan). The specific objectives were to identify the characteristics of families recieve Conditional Cash Transfer Program and analysis stunting children under five years in families receiving Conditional Cash Transfer Program in Baturetno subdistric, Wonogiri district.Methods: The study was conducted in the subdistrict of Baturetno, Wonogiri district and has collected a total of 112 infants of families Conditional Cash Transfer Program participants. Sampling of children under five years was done purposively. This study was conducted from July to August 2017.Results: The proportion of children who stunting quite high at 33.0% higher than the results of the Nutritional Status Monitoring in 2016 amounted to 27.5%. If stunting is associated with the age group of stunting problems occur in all age groups in the amount of 31.3% in under 23 months and 34.3% at 23 months upwards of 31.3% children under five short, as much as 25.0% children under five are overweight according to height (weight for height) is normal and thus potentially becoming obese.Conclusions: The implementation of weight monitoring should be monitored the height of children under five in the hope family program.


Tendencias ◽  
2015 ◽  
Vol 16 (2) ◽  
pp. 80
Author(s):  
Vanessa Katherine Bolaños Guerrero ◽  
Daisy Viviana Triviño Jaramillo

En esta investigación se estudian algunas alteraciones generadas por el Programa “Familias en Acción” en la racionalidad económica de beneficiarios de este subsidio en la ciudad de San Juan de Pasto, Nariño, Colombia. Se parte de los postulados de la Economía del Comportamiento y de la metodología propuesta por la Economía Experimental. Mediante una plataforma de simulación, en el marco de un diseño cuasi-experimental, se analiza el comportamiento de los sujetos frente al consumo de bienes suntuarios, decisiones de ahorro e inversión y la búsqueda de un trabajo remunerado. Los hallazgos señalan que la recepción del subsidio otorgado por el programa no genera alteraciones significativas en las decisiones de ahorro, inversión y búsqueda de un empleo remunerado de los beneficiarios, sin embargo, se presenta un aumento en el consumo de bienes suntuarios, esta variación es mayor en la población que ha recibido el subsidio durante un período prolongado de tiempo, por lo cual podría afirmarse que un programa de transferencias condicionadas que se perpetúa durante mucho tiempo, genera hábitos de comportamiento en los beneficiarios contrarios a los esperados por la política. ABSTRACTThis current research studies some alterations generated by the program “Families in Action” on economic rationality of beneficiaries of this subsidy in the city of San Juan de Pasto, Nariño, Colombia. It starts the candidates’ Behavioral Economics and the methodology proposed by the Experimental Economics. Through a simulation platform, as part of a quasi-experimental design, the behavior of the subjects is analyzed by viewing the consume of sumptuary properties, saving and investment decisions and the search of a well-paid job. The findings indicate that the reception of the subsidy from the program does not generate significant changes in the decisions of beneficiaries about savings, investment and seeking gainful employment, however, an increase in the consumption of luxury goods is presented, this variation is higher in the population that has received the subsidy for an extended period of time, so it could be argued that a conditional cash transfer program that is perpetuated long, generates behavioral habits beneficiaries different from those expected by politics. RESUMOA presente investigação estuda algumas alterações geradas pelo programa “Famílias em Ação” na racionalidade econômica dos beneficiários deste subsídio, na cidade de San Juan de Pasto, Nariño, Colômbia. Começa dos candidatos Economia Comportamental e da metodologia proposta pela Economia Experimental. Através de um delineamento quasi-experimental, em que por meio de uma plataforma de simulação, se analiso o comportamento dos indivíduos frente ao consumo de bens de luxo, decisões de poupança e inversão e de procurar um trabalho remunerado. Os resultados indicam que a recepção do subsídio do programa não gera mudanças significativas nas decisões dos beneficiários sobre poupança, investimento e à procura de emprego remunerado, no entanto, um aumento no consumo de bens de luxo é apresentado, esta variação é maior no população que tem recebido osubsídio por um período prolongado de tempo, então pode-se argumentar que um programa de transferência condicionada de renda que se perpetua por muito tempo, gera hábitos comportamentais beneficiários diferentes dos esperados pela política.


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