Money is not enough
| Jazyk: | angličtina |
|---|---|
| Rok vydání: | 2022 |
| Předmět: |
program design National Government Expenditures and Welfare Programs Semiparametric and Nonparametric Methods: General d81 - Criteria for Decision-Making under Risk and Uncertainty h53 - National Government Expenditures and Welfare Programs proxy-means-test Ecuador c14 - Semiparametric and Nonparametric Methods: General Criteria for Decision-Making under Risk and Uncertainty cash transfer Welfare and Poverty: Government Programs Provision and Effects of Welfare Programs long-term impact |
| Popis: | The effectiveness of cash transfer programs to foster social mobility in the medium and long run is still unclear. Using a RDD we found that after six years of exposure to the Ecuadorean cash transfer, living conditions of beneficiaries are worse off than non-beneficiaries. We argue that it is the mechanism to evaluate continuity that incentivizes households to remain poor. Continuity is evaluated every 4-6 years based solely on a proxy-means score and not on whether households are on a path towards escaping poverty. Furthermore, households do not know how the score pis estimated and their proximity to the cutoff. This creates uncertainty on the side of beneficiaries, who take long-term suboptimal decisions to maximize their short-term utility. We also estimate the effect of the old-age pension’s branch of the program, whose beneficiaries do not face uncertainty about their continuity, finding no negative effects for that branch. |
| Databáze: | OpenAIRE |
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