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Winter 2023

ISSN 0890-913X

Volume 38, Number 4

Show Me the Money! The Effects of a Conditional Cash-Transfer Program on the Labor Market in Ecuador

Daniel Sánchez-Piñol Yulee, University of Tennessee at Chattanooga, United States of America

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TheJournalofPrivateEnterprise38(4),2023,1-28ShowMetheMoney!TheEffectsofaConditionalCash-TransferProgramontheLaborMarketinEcuadorDanielSánchez-PiñolYuleeUniversityofTennesseeatChattanoogaUnitedStatesofAmericaAbstractDocashtransfersdiscourageworkandincentivizeleisure?Ordocashtransfershelpbeneficiariesescapethepovertytrap,acquiremorecapital,andraisetheirincomeinthefuture?Iconductadifference-in-differencesanalysisofpaneldatafrom2018and2019forEcuador’scash-transferprogram,BonodeDesarrolloHumano.Theestimatedeffectsonearnings,hoursworked,andcapitalaccumulationarenegative.Iusepropensityscorematchingandexactmatchingtocreateabettercontrolgroupforthedifference-in-differencesanalysis.Ifindnegativeeffects,butthestatisticalsignificancevariesdependingonthespecification.Onbalance,BonodeDesarrolloHumanohasdiscouragedworkinEcuador.JELCodes:D04;J08Keywords:economicdevelopment,laboreconomics,cash-transferprogramsI.IntroductionCash-transferprogramshavebecomeaworldwidetoolforwelfareassistance(Gentilini,Honorati,andYemtsov2014).Forinstance,cashtransferswerethemainpolicyresponsetotheCOVID-19crisisimplementedbygovernmentsglobally(Jerving2020).Previousresearchhasshownthatcash-transferprogramscanalleviatepoverty(FiszbeinandSchady2009),improveeducationaloutcomes(Schultz2004),andimprovehealthconditions(Gertler2004).Moreover,manystudieshavebeenconductedtoassesstheimpactofcashtransfersonthelabormarket.Inacomprehensivesurveyusingrandomizedcontroltrialsforprogramsindifferentdevelopingcountries,Banerjeeetal.(2017)findmixedevidencethatcash-transferprogramsdisincentivizework.Otherresearch,specificallyinLatinAmerica,findsnosignificantresultsusingquasiexperimentalmethodsorrandomizedcontroltrials.SomeexamplesareAttanasioandGómez(2004)onColombia’sFamiliasenAcciónprogram,GalianiandMcEwan(2013)onHonduras’sProgramade

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Title	Show Me the Money! The Effects of a Conditional Cash-Transfer Program on the Labor Market in Ecuador
Authors/Creators:	Daniel Sánchez-Piñol Yulee, University of Tennessee at Chattanooga, United States of America
Year:	2023
Volume:	38
Number:	4
Pages:	1 - 28
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	economic development, labor economics, cash-transfer programs

Citation:
Sánchez-Piñol Yulee, Daniel / 2023. "Show Me the Money! The Effects of a Conditional Cash-Transfer Program on the Labor Market in Ecuador." The Journal of Private Enterprise, 38(4): 1-28.