Working Paper: CEPR ID: DP14541
Authors: Daniela Del Boca; Chiara Pronzato; Giuseppe Sorrenti
Abstract: Employment helps reduce the risk of poverty. Through a randomized controlled trial, we evaluate the impact of a conditional cash transfer (CCT) program to low-income families with dependent children on household members’ labor sup-ply. Recipients are required to attend labor-market-oriented mentoring courses as a condition of 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 arises for mothers. Results seem to be explained by improved family networks and increased parental investments in activities that enhance labor market opportunities.
Keywords: conditional cash transfers; poverty; household labor supply; mentoring courses
JEL Codes: I10; I20; J24; I31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| CCT (C24) | fathers' likelihood to work (J22) |
| CCT (C24) | fathers' labor supply (J22) |
| CCT (C24) | improved family networks (J12) |
| CCT (C24) | parental investments in labor market activities (J24) |
| CCT (C24) | better economic conditions (P17) |
| CCT (C24) | fewer utility bill issues (L97) |
| CCT (C24) | higher likelihood of internet access (L96) |
| CCT and mentoring courses (A29) | labor market knowledge (J20) |
| CCT and mentoring courses (A29) | family networks (D85) |