The Impacts of Conditional Cash Transfers on Labor Markets: Evidence from the Philippines
Takemoto, Rie
2023
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Although Conditional Cash Transfers (CCTs) programs have been perceived to be widely successful in reducing short-term poverty and improving educational and health outcomes of children, their indirect impacts on the labor market or on the local economy remain uncertain. In fact, there has been rising concerns on the disincentive effects of CCTs, which could negatively affect the labor market by ... read morereducing labor supply. Given this context, this paper studies the long-term impacts of the CCTs on the labor market. Specifically, it evaluates the labor market outcome in the Philippines from 2009 and 2014 following the introduction of a national social protection program called the Pantawid Pamilyang Pilipino program in 2008. The main finding of the study is that the CCT has positive, yet weak, impacts on the labor market outcomes. The largest impact found in the study is a change in work hours per week, which increase by 4.2 %, or approximately 1 hour and 12 minutes, 2 years following the treatment. The study also confirms that, while the CCT has a potential to reduce worker incentives, the treatment effects on labor supply remain positive, which leads to a conclusion that the overall positive impacts of the CCT on the labor market are driven by an increase in labor supply among the beneficiaries after the treatment.
Thesis (B.A.)--Tufts University, 2023.
Submitted to the Dept. of Economics.
Advisor: Kyle J. Emerick, Cynthia Kinnan.read less - ID:
- xd07h849d
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