Conditional Cash Transfers: Do They Result in More Patient Choices and Increased Educational Aspirations?
Diana Contreras Suarez, L Cameron
Economic Development and Cultural Change | University of Chicago Press | Published : 2020
Conditional cash transfers aim to increase human capital in poorer families. They do this directly through conditions but may also influence household decision making in other ways. Using a regression discontinuity design, we test whether a large conditional cash transfer program affects discounting choices and aspirations for children’s education. A greater willingness to defer consumption and desire to invest in education may result from habits formed during the program, information received, and/or by the relaxation of the budget constraint. We however find no evidence of such impacts, which limits the long-term impacts of such programs if the transfers were to cease.