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The World Bank Research Observer 2005 20(1):57-80; doi:10.1093/wbro/lki005
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© The Author 2005. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK. All rights reserved. For permissions, please e-mail: journals.permissions@oupjournals.org.

Reassessing Conditional Cash Transfer Programs

Jishnu Das

Jishnu Das is an economist in the Development Research Group at the World Bank

Quy-Toan Do

Quy-Toan Do is an economist in the Development Research Group at the World Bank

Berk Özler

Berk Özler is an economist in the Development Research Group at the World Bank

Correspondence: His e-mail address is jdas1{at}worldbank.org

Correspondence: His e-mail address is qdo{at}worldbank.org

Correspondence: His e-mail address is bozler{at}worldbank.org

Abstract

During the past decade, the use of conditional cash transfer programs to increase investment in human capital has generated considerable excitement in both research and policy forums. This article surveys the existing literature, which suggests that most conditional cash transfer programs are used for essentially one of two purposes: restoring efficiency when externalities exist or improving equity by targeting resources to poor households. The programs often meet their stated objectives, but in some instances there is tension between the efficiency and equity objectives. The overall impact of a program depends on the gains and losses associated with each objective.


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