Welfare programs and labor supply in developing countries : Experimental evidence from Latin America

This paper studies the effect of welfare programs on work incentives and the labor supply of adults in developing countries. The document builds on the experimental evaluations of three programs implemented in rural areas: Mexico's PROGRESA, Nicaragua's Red de Protección Social (RPS) and H...

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Autores principales: Alzúa, María Laura, Cruces, Guillermo, Ripani, Laura
Formato: Articulo Documento de trabajo
Lenguaje:Inglés
Publicado: 2010
Materias:
Economía
welfare programs; income support; labor supply; adult work incentives; conditional cash transfers; randomized control trials; developing countries
América Latina
trabajo
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/3654
http://cedlas.econo.unlp.edu.ar/download.php?file=archivos_upload/doc_cedlas95.pdf
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-3654
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Economía
welfare programs; income support; labor supply; adult work incentives; conditional cash transfers; randomized control trials; developing countries
América Latina
trabajo
spellingShingle Economía
welfare programs; income support; labor supply; adult work incentives; conditional cash transfers; randomized control trials; developing countries
América Latina
trabajo
Alzúa, María Laura
Cruces, Guillermo
Ripani, Laura
Welfare programs and labor supply in developing countries : Experimental evidence from Latin America
topic_facet Economía
welfare programs; income support; labor supply; adult work incentives; conditional cash transfers; randomized control trials; developing countries
América Latina
trabajo
description This paper studies the effect of welfare programs on work incentives and the labor supply of adults in developing countries. The document builds on the experimental evaluations of three programs implemented in rural areas: Mexico's PROGRESA, Nicaragua's Red de Protección Social (RPS) and Honduras' Programa de Asignación Familiar (PRAF). The impact of welfare on labor supply has been widely studied in developed countries, where most recent initiatives attempt to mitigate negative effects on work incentives. The programs under study are conditional cash transfers (CCT), which combine monetary benefits with incentives for curbing child labor and fostering the accumulation of human capital. Unlike their counterparts in developed economies, however, they do not account for potential impacts on the labor supply of adults, and there is little systematic evidence on this aspect despite a wealth of empirical studies on their intended outcomes. Comparable results for the three countries indicate mostly negative but small and non-significant effects of the programs on the employment of adults, no reallocation of labor between agricultural and other sectors, and a reduction in hours worked by adults in eligible households in RPS. Moreover, PROGRESA had a positive effect on beneficiaries' wages. The programs did not imply major disincentives to work, despite substantial transfers, but they had some effects on local labor markets. This mechanism is related to recent findings on the indirect impact of CCTs on ineligible households, and implies that future evaluation studies and designs should account for the equilibrium effects of the interventions.
format Articulo
Documento de trabajo
author Alzúa, María Laura
Cruces, Guillermo
Ripani, Laura
author_facet Alzúa, María Laura
Cruces, Guillermo
Ripani, Laura
author_sort Alzúa, María Laura
title Welfare programs and labor supply in developing countries : Experimental evidence from Latin America
title_short Welfare programs and labor supply in developing countries : Experimental evidence from Latin America
title_full Welfare programs and labor supply in developing countries : Experimental evidence from Latin America
title_fullStr Welfare programs and labor supply in developing countries : Experimental evidence from Latin America
title_full_unstemmed Welfare programs and labor supply in developing countries : Experimental evidence from Latin America
title_sort welfare programs and labor supply in developing countries : experimental evidence from latin america
publishDate 2010
url http://sedici.unlp.edu.ar/handle/10915/3654
http://cedlas.econo.unlp.edu.ar/download.php?file=archivos_upload/doc_cedlas95.pdf
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