DP14541 Cash Transfer Programs and Household Labor Supply
|Author(s):||Daniela Del Boca, Chiara Pronzato, Giuseppe Sorrenti|
|Publication Date:||March 2020|
|Keyword(s):||conditional cash transfers, Household Labor Supply, mentoring courses, poverty|
|JEL(s):||I10, I20, I31, J24|
|Programme Areas:||Labour Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=14541|
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 supply. 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.