DP11937 Are Conditional Cash Transfers Fulfilling Their Promise? Schooling, Learning, and Earnings After 10 Years
Interventions promoting investment in child human capital are motivated by their
potential to break the intergenerational transmission of poverty. With this goal, conditional
cash transfer (CCT) programs are the anti-poverty program of choice in many developing
countries even though the evidence on their longer term objectives is inconclusive. This paper
uses the randomized phase-in of a CCT program in Nicaragua to estimate long-term
education, learning, and labor market effects for males 10 years after the start of the program.
Gains in schooling and learning coincide with positive labor market returns including higher
earnings, and demonstrate important long-term returns to CCTs.