Discussion Paper Details

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Title: Transfers to Households with Children and Child Development

Author(s): Daniela Del Boca, Christopher J Flinn and Matthew Wiswall

Publication Date: October 2016

Keyword(s): child development, conditional cash transfers, Income Transfers and Time allocation

Programme Area(s): Labour Economics

Abstract: In this paper we utilize a model of household investments in the development of children to explore the impact of various transfer policies on the distribution of child outcomes. We develop a cost criterion that can be used to compare the cost effectiveness of unrestricted, restricted, and conditional cash transfer systems, and find that an optimally chosen conditional cash transfer program is the most cost efficient way to attain any given gain in average child quality. We explore several design elements for the conditional cash transfer system and discuss the role of production function uncertainty and measurement error.

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Bibliographic Reference

Del Boca, D, Flinn, C and Wiswall, M. 2016. 'Transfers to Households with Children and Child Development'. London, Centre for Economic Policy Research.