Does Conditionality Generate Heterogeneity and Regressivity in Program Impacts? The Progresa Experience

We study both empirically and theoretically the consequences of introducing a conditional cash transfer scheme for the distribution of program impacts. Intuitively, if the conditioned-on good is normal, then better-offhouseholds tend to receive a larger positive impact. I formalize this insight by means of a simple model of child labor, applying the Nash-Bargaining approach as the solution concept. A series of tests for heterogeneity in program impacts are developed and applied to Progresa, an anti-poverty program in Mexico. It can be concluded that this program exhibits a lot of heterogeneity in treatment effects. Consistent with the model, and under the assumption of rank preservation, program impacts are distributionally regressive, although positive, within the treated population


Issue Date:
2006
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/127042
PURL Identifier:
http://purl.umn.edu/127042
Total Pages:
51
JEL Codes:
H430; C140; C210
Series Statement:
WP
2006-09




 Record created 2017-04-01, last modified 2018-01-22

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