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Conditional cash transfer programs and household labor supply

Author

Listed:
  • Del Boca, Daniela
  • Pronzato, Chiara
  • Sorrenti, Giuseppe
Abstract
Employment correlates with the reduced risk of poverty. Through a randomized controlled trial, we evaluate the impact of a conditional cash transfer (CCT) program offered to low-income families with dependent children on household members’ labor supply. Recipients are required to attend labor-market-oriented mentoring courses as a condition for receiving the transfer. One year after admission to the program, fathers assigned to the CCT program are more likely to work (+14 percent) than fathers assigned to an unconditional cash transfer program or to a pure control group. No effect is observed for mothers. Results seem to be explained by improved family networks and increased investments, especially for fathers, in activities that enhance labor market opportunities.

Suggested Citation

  • Del Boca, Daniela & Pronzato, Chiara & Sorrenti, Giuseppe, 2021. "Conditional cash transfer programs and household labor supply," European Economic Review, Elsevier, vol. 136(C).
  • Handle: RePEc:eee:eecrev:v:136:y:2021:i:c:s0014292121001082
    DOI: 10.1016/j.euroecorev.2021.103755
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    References listed on IDEAS

    as
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    Cited by:

    1. Verlaat, Timo & Todeschini, Federico & Ramos, Xavier, 2023. "The Employment Effects of Generous and Unconditional Cash Support," IZA Discussion Papers 15976, Institute of Labor Economics (IZA).
    2. Xavier Ramos & Timo Verlaat & Federico Todeschini, 2023. "The Employment Effects of Generous and Unconditional Cash Support," Working Papers 638, ECINEQ, Society for the Study of Economic Inequality.
    3. Aparicio Fenoll, Ainoa & Quaranta, Roberto, 2022. "How to Best Fight Poverty: The Uneven Ex-post Effects of Conditional and Unconditional Cash Transfers on Labor Earnings," IZA Discussion Papers 15658, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Conditional cash transfers; Poverty; Household labor supply; Mentoring courses;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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