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The heterogeneous impact of CCT programmes on child labor: The case of Tekoporã in Paraguay (Hirata 2008)

Review Guidelines

Absence of conflict of interest.

Citation

Hirata, G. I. (2008). The heterogeneous impact of CCT programmes on child labor: The case of Tekoporã in Paraguay. Brazil: International Poverty Centre/UNDP.

Highlights

  • The study’s objective was to examine the impact of the Tekoporã conditional cash transfer program on children’s participation in non-domestic labor and school attendance.
  • The author used a nonexperimental design to compare the outcomes of children ages 4 to 14 that received the conditional cash transfers with those who did not, based on data from a program eligibility questionnaire and a follow-up survey. The author used statistical models to estimate the effects of the program.
  • The study found no significant relationship between the Tekoporã program and the number of children in the household who participated in non-domestic labor. However, the program was significantly related to decisions between school and work, with a decrease in the probability that children would “only work” or “neither work nor attend school.”
  • The quality of causal evidence presented in this report is low because the author did not account for trends in outcomes before the intervention or adequately control for time-varying characteristics that might influence the outcome. This means we are not confident that the estimated effects are attributable to Tekoporã; other factors are likely to have contributed.

Intervention Examined

Tekoporã

Features of the Intervention

Tekoporã, a conditional cash transfer program, began in 2005 and served 3,500 households in five districts in rural Paraguay. Households were eligible if they lived in a priority area defined by the Geographic Prioritization Index, were poor according to the multidimensional quality of life index (ICV index), and had at least one child under 15 years of age or a pregnant woman in the household. To receive the cash transfer, children under 15 had to maintain an 85 percent school attendance rate. Children up to 5 years of age had to regularly visit a health center. Households received $12 USD cash transfers each month, with an additional $6 USD per child under 15 in the household for up to 4 children (Soares, Ribas, & Hirata, 2008).

Features of the Study

The author used a nonexperimental design to compare the labor and school attendance outcomes of children ages 4 to 14 who received the conditional cash transfer with those who did not receive it, using data from a program eligibility questionnaire and a follow-up survey. The treatment group consisted of 3,500 households in the five rural districts that received the cash transfer. The comparison group consisted of 776 households in the five participating districts that did not receive the cash transfer and 1,160 households in two districts that did not participate in the program. The author used data from the 2005 program eligibility questionnaire (Ficha Hogar) as a baseline measure. The author collected follow-up data with an evaluation survey (Encuesta de Evaluación) from January to April 2007. The Ficha Hogar contained data for approximately 3,000 children and the follow-up evaluation survey contained data for approximately 2,000 children. Outcome measures included the number of children in the household who participated in non-domestic labor, and children’s participation in work and/or school (neither work nor go to school, only work, only go to school, or work and go to school). The author had baseline data for the child labor outcome; however, prior school attendance was measured using an item on the follow-up survey. The author used difference-in-differences and statistical models to estimate the effects of the program, controlling for child and family characteristics.

Findings

Employment/Child labor

  • The study found no statistically significant relationship between the Tekoporã program and the number of children in the household who participated in non-domestic labor. However, the program was significantly related to a decrease in labor activities for girls, but not boys.
  • The study found a statistically significant relationship between the Tekoporã program and a decrease in the decision that children would only work. It was also significantly related to a decrease in the decision that children would “neither work nor attend school.”

Education (School participation/enrollment)

The study found no statistically significant relationship between the Tekoporã program and the decision that children would only attend school.

Considerations for Interpreting the Findings

The study employed a difference-in-difference approach. For studies using difference-in-differences designs, authors must demonstrate equivalent trends between treatment and comparison groups. In this case, because there was only one observed pre-treatment period for child labor, the authors must use a placebo method or adequately control for time-varying characteristics that might influence the outcomes of interest. In this study, authors did not include a control for time trends. Additionally, school attendance was only asked during the follow-up survey so prior school attendance was based on a retrospective measure.

Causal Evidence Rating

The quality of causal evidence presented in this report is low because the author did not account for trends in outcomes before the intervention or adequately control for time-varying characteristics that might influence the outcome. This means we are not confident that the estimated effects are attributable to Tekoporã; other factors are likely to have contributed.

Additional Sources

Soares, F. V., Ribas, R. P., & Hirata, G. I. (2008). Achievements and shortfalls of conditional cash transfers: Impact evaluation of Paraguay's tekoporã programme (No. 3). International Policy Centre for Inclusive Growth.

Reviewed by CLEAR

December 2018

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