Absence of conflict of interest.
Citation
Borraz, F., & González, N. (2009). Impact of the Uruguayan conditional cash transfer program. Cuadernos de economia, 46(134), 243-271. doi:10.4067/S0717-68212009000200006
Highlights
- The study’s objective was to analyze the impact of a conditional cash transfer program (Ingreso Ciudadano) on school attendance (ages 8 to 14) and child labor (ages 6 to 14) among children in Uruguay from 2005 to 2007.
- Using the annual Uruguayan National Household Survey with cross sectional data from 2006 and 2007, the authors compared school attendance and child labor for households who received the conditional cash transfer to a group of non-participating households who had similar characteristics.
- The study found no statistically significant relationship between the conditional cash transfer program and school attendance. However, the study found a statistically significant relationship between the program and a reduction in child labor for females in the Montevideo region, but not for males in any region or females in the rest of the country.
- The quality of causal evidence presented in this report is low because the authors did not demonstrate that groups were similar at baseline. This means we are not confident that the estimated effects are attributable to Ingreso Ciudadano; other factors are likely to have contributed.
Intervention Examined
Ingreso Ciudadano
Features of the Intervention
Ingreso Ciudadano, a conditional cash transfer program, was implemented as part of the National Plan to Address the Social Emergency (PANES) in Uruguay from April 2005 to December 2007. The program provided a conditional cash transfer equivalent to $56 USD on a monthly basis to eligible households with amounts updated every four months. The payment was conditional on school enrollment and attendance as well as regular health status control for the children. Households were eligible to receive Ingreso Ciudadano if they were in the “first quintile of people below the poverty line” based on 2 criteria: a monthly per capita income of less than $51 USD and Critical Lack Index above a certain amount, based on the region of the country. In total, 59,808 households received Ingreso Ciudadano payments in 2006, and 65,531 received payments in 2007.
Features of the Study
To test the impact of the Ingreso Ciudadano program, the authors used cross-sectional data from the 2006 and 2007 Uruguayan National Household Surveys. The authors used propensity score matching to create a comparable group of non-participating households. The non-participating households had similar socioeconomic and housing characteristics as the participating households. The authors analyzed the average treatment effect on school attendance in separate analyses for the rural area of Montevideo and the urban areas of the country by gender and age (8 to 11 and 12 to 14). Similarly, the average treatment effect for child labor was analyzed separately by region (Montevideo and the urban areas of the country) and gender for children ages 6 to 14.
Findings
Employment/Child labor
- The study found a statistically significant relationship between the Ingreso Ciudadano program and a reduction in child labor for females in the Montevideo region.
- The study found no statistically significant relationships between the Ingreso Ciudadano program and child labor for males in any region or females in the rest of the country.
Education (School participation/enrollment)
- The study found no statistically significant relationship between the Ingreso Ciudadano program and school attendance.
Considerations for Interpreting the Findings
The authors created a matched group of non-participating households to compare to Ingreso Ciudadano participating-households. However, the authors did not account for the outcomes at baseline, such as previous school attendance or child labor. Preexisting differences between the groups—and not the program/intervention— could explain the observed differences in outcomes. The authors also did not note if households anticipated the intervention and changed behavior based on knowledge of program eligibility.
Causal Evidence Rating
The quality of causal evidence presented in this report is low because the authors did not account for the outcomes at baseline, such as previous school attendance or child labor. This means we are not confident that the estimated effects are attributable to Ingreso Ciudadano; other factors are likely to have contributed.