impacts of cash transfers on schooling

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Heterogeneous Impacts of an Unconditional Cash Transfer Programme on Schooling: Evidence from the Ghana LEAP Programme Richard de Groot a , Sudhanshu Handa a , Michael Park b , Robert Osei Darko c , Isaac Osei-Akoto c , Garima Bhalla b , Luigi Peter Ragno d a UNICEF Office of Research – Innocenti b University of North Carolina at Chapel Hill, Department of Public Policy c Institute of Statistical, Social and Economic Research, University of Ghana – Legon d UNICEF Ghana Country Office Adolescence, Youth and Gender: Building Knowledge for Change Conference Oxford, September 8, 2016

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Page 1: Impacts of cash transfers on schooling

Heterogeneous Impacts of an Unconditional Cash Transfer Programme on Schooling: Evidence from the Ghana LEAP Programme

Richard de Groota, Sudhanshu Handaa, Michael Parkb, Robert Osei Darkoc, Isaac Osei-Akotoc, Garima Bhallab, Luigi Peter Ragnod

a UNICEF Office of Research – Innocentib University of North Carolina at Chapel Hill, Department of Public Policy

c Institute of Statistical, Social and Economic Research, University of Ghana – Legond UNICEF Ghana Country Office

Adolescence, Youth and Gender: Building Knowledge for Change ConferenceOxford, September 8, 2016

Page 2: Impacts of cash transfers on schooling

Introduction Findings from Ghana Livelihood Against

Poverty (LEAP) programme What is the effect of an unconditional

cash transfer programme on schooling outcomes for children?

Do parents display compensating or reinforcing behaviour towards lower ability children (‘marginal’ child)?

Is there a need for conditionality in this case? (i.e. strict rules attached to receipt of transfer)

Page 3: Impacts of cash transfers on schooling

Ghana LEAP programme Ghana’s flagship social protection programme Initiated in 2008, currently reaching

>150,000 households (and counting!) Cash payments and health insurance Three demographic groups:

Orphaned and vulnerable children (OVC’s), elderly and people with a disability (PWD)

Soft conditions for OVC households Transfer level: 7% of household consumption

Page 4: Impacts of cash transfers on schooling

Methods Core: Difference-in-Difference (DD) with

Propensity Score Matching (PSM) Treatment group (N=699) pulled from

2010 extension in 3 regions (Brong Ahafo, Central & Volta)

Comparison group (N=914) pulled from national survey

Identical survey instruments, teams and field work methods Ideal conditions for PSM!

Page 5: Impacts of cash transfers on schooling

Methods Inverse Probability Weighting (IPW)

IPW uses inverse of the propensity score: Higher score, more similar to LEAP

household Covariate adjustment Cluster fixed effects Sample size (children 5 – 17 years):

Comparison TreatmentBaseline (2010)

1,239 979

Follow-up (2012)

1,076 869

Page 6: Impacts of cash transfers on schooling

Methods Schooling indicators:

Current enrolment Attendance (missed any school in last 7

days) Analyze effect by subgroups:

Age group (5 – 12 and 13 – 17) Sex Cognitive ability (Raven’s test)

Page 7: Impacts of cash transfers on schooling

Ghana LEAP - Impacts on school enrollment

Impacts on enrollment large for older boys

All c

hild

ren

5 - 1

7 ye

ars

All

Boy

s

Gir

ls All

Boy

s

Gir

ls

Children 5 - 12 years Children 13 - 17 years

-100

1020

-0.7

-4.9**

1.1

8.1**

20.3***

1.3

0.4

Page 8: Impacts of cash transfers on schooling

Ghana LEAP - Impacts on any missed school

Impacts on attendance for younger children and older girls

All c

hild

ren

5 - 1

7 ye

ars

All

Boy

s

Gir

ls All

Boy

s

Gir

ls

Children 5 - 12 years Children 13 - 17 years

-14-10

-6-22

-8.5***-10.5***

-13.0***-8.3**

-5.4 0.4

-9.8*

Page 9: Impacts of cash transfers on schooling

Impacts on school enrollment by cognitive ability

Higher impact among older children with low cognitive ability (the ‘marginal’ child)

All children 5 - 17 years

Children 5 - 12 years

Children 13 - 17 years

Boys 5 - 17 years

Girls 5 - 17 years

-10-505

10152025

Low cognitive ability

-6.4**

22.0***

4.1*8.5*

5.4*

Page 10: Impacts of cash transfers on schooling

Impacts on any missed school by cognitive ability

Strong impact observed among children with low cognitive ability compensating behavior of parents

All children 5 - 17 years

Children 5 - 12 years

Children 13 - 17 years

Boys 5 - 17 years

Girls 5 - 17 years

-14-12-10-8-6-4-202

Low cognitive ability

-8.7**-12.8*** -12.8**

Page 11: Impacts of cash transfers on schooling

Pathways of impact How did LEAP create an increase in

enrolment and attendance? Analyze effects on schooling inputs:

Significant increases in schooling expenditures (books, uniforms, total schooling expenditures)

LEAP may have loosened constraints on out-of-pocket educational expenditures

Page 12: Impacts of cash transfers on schooling

Conclusion Ghana LEAP showed strong impacts on

children’s schooling Important to move beyond average

treatment effects Strong impacts on adolescent boys

positive elasticity of demand for schooling

Significant increase in enrolment for older children with low cognitive ability

Suggests that parents demonstrate compensating behavior towards their children, if given the chance

Page 13: Impacts of cash transfers on schooling

School enrollment impacts among secondary age children strong, equal to those from CCTs in Latin America

Malawi S

CTP

Lesoth

o

Ghana

LEAP

Kenya

CT-O

VC

South

Afri

ca C

GP

Zambia

MCP

Mexico

Opo

rtunid

ades

Colombia

FA

Ecuad

or B

DH048

121620

Notes: Bars represent percentage point impacts. Enrollment for primary aged children already high, thus impacts reported at secondary age enrollment

Cross-country impacts on secondary age school enrollment (percentage point impacts similar or above Latin American

CCTs)

Zimbabwe: No impacts on enrollment (crowding out due to Basic Education Assistance Module - BEAM). However, 7 pp increase in attendance.