Intended%20and%20Unintended%20Effects%20of%20Unconditional%20Cash%20Transfers%3A%0D%0AThe%20Case%20of%20Bolivia%E2%80%99s%20Renta%20Dignidad

Working Papers

Intended and Unintended Effects of Unconditional Cash Transfers: The Case of Bolivia’s Renta Dignidad


CODE: IDB-WP-631
PUBLISHED: December 2015
LANGUAGE: English
RELATED TOPICS: Poverty Reduction and Labor
DOWNLOAD FILE IN: English

Abstract:

This document presents a quasi-experimental impact evaluation of Bolivia’s Renta Dignidad, a universal and non-contributory old age pension. Causal effects on direct, future, and indirect beneficiaries are identified, taking advantage of a reduction in age of eligibility from 65 to 60 years in December 2007. Differencein- difference and changes-in-changes approaches are used to calculate average and quantile treatment effects. For women, non-contributory pensions have, on average, increased their households’ non-labor income. This has decreased their labor supply and labor earnings, in turn decreasing households’ labor income and thus reducing, ceteris paribus, the program’s effect on total per capita household income. Unexpectedly, the program did not have significant effects on men’s welfare, investments and labor market outcomes. The results also suggest that additional resources were neither consumed nor invested in health, education, or the purchase of durables. Households most likely held the additional resources and invested in dwelling improvements.

Related Research by JEL Codes:
(or click here to find research by JEL Codes)
  • Ideas for Development in the Americas (IDEA), Volume 38: September-December, 2015: The Big Job of Raising Little Kids
    Newsletter / Journal
    IDB-NW-165 - December 2015

    This issue of IDEA examines some of the issues surrounding early childhood development in Latin America and the Caribbean, and why government should be involved in what would seem to be a family affair. It draws on the 2015 edition of the IDB’s flagship series, Development in the Americas, entitled The Early Years: Child Well-Being and the Role of Public Policy, by Samuel Berlinski and Norbert Sch ... (View publication)

  • The Early Years: Child Well-being and the Role of Public Policy (Synopsis)
    Brochures
    IDB-BR-181 - October 2015

    This synopsis reviews the arguments in favor of a larger role for public policy in determining the well-being of young children. It explains where the region is in terms of child well-being today, how it should go about improving public programs, and the institutional challenges to implementing those programs. Together, this synopsis and the table of contents provide just a taste of the rich ... (View publication)

  • The Early Years: Child Well-being and the Role of Public Policy
    Books
    IDB-BK-154 - October 2015

    Child well-being matters for both ethical and economic reasons as children who flourish in the early years are more likely to become healthy, productive citizens later in life. This year’s edition of Development in the Americas (DIA) focuses on the well-being of children from conception to 8 years of age and makes the case for public intervention in improving child outcomes. The process of child d ... (View publication)

Hello, Welcome to the IDB!

Please join our mailing list by simply entering your email below.