1 / 27

6 CCCTs? Conditional Cash Transfers in the Context of Social Policy

6 CCCTs? Conditional Cash Transfers in the Context of Social Policy. Arup Banerji Director, Social Protection and Labor, World Bank Budapest, May 7 2010. 6 CCCTs? 6 Conditions for Conditional Cash Transfers. Demand for CCTs. Supply of CCTs.

ludwig
Télécharger la présentation

6 CCCTs? Conditional Cash Transfers in the Context of Social Policy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 6 CCCTs?Conditional Cash Transfers in the Context of Social Policy Arup Banerji Director, Social Protection and Labor, World Bank Budapest, May 7 2010

  2. 6 CCCTs?6 Conditions for Conditional Cash Transfers Demand for CCTs Supply of CCTs • Structural poverty in families with children is a major concern • There is under-investment in core activities that can break the poverty cycle • There is shared political support for “mutual obligation” schemes • There is access to good quality services (schooling, clinics) available to the target groups • There is enough information to be able to target transparently and set entry/exit rules • There are no major overlaps with other cash transfers that may cause incentive ‘traps’

  3. Demand for CCTs: 3 Questions

  4. Demand for CCTs: 3 Questions 1. Is structural poverty a major concern for families with children?

  5. Are families with children (more) at risk of poverty?

  6. Risk of poverty of specific age groups in Europe Source: Lelkes, Medgyesi and Tóth

  7. Demand for CCTs: 3 Questions 1. Is structural poverty a major concern for families with children? 2. Is there under-investment in core activities that can break the poverty cycle ?

  8. Potential under-investment in education (baselines for CCTs)

  9. Under-investment in secondary education by Hungarian Roma % of cohort population, Hungary, 2003 Source: Kertesi and Kezdi (2006)

  10. Returns to Schooling Matter?

  11. Demand for CCTs: 3 Questions 1. Is structural poverty a major concern for families with children? 2. Is there under-investment in core activities that can break the poverty cycle ? 3. Is there shared political support for “mutual obligation” schemes?

  12. CCTs have addressed political constraints to giving social transfers to the poor • Arguments about whether all the poor are “deserving” led to the first “workfare” schemes in the US, which imposed a mutual obligation to work in exchange for welfare payments • Modern European “activation” policies also have “mutual obligation” characteristics as part of the social contract • The state is re-stated as a partner rather than a charity, and the poor as responsible rather than dependent • In Mexico, Levy and Rodriguez (2004) explicitly write: • Shared responsibility and respect inevitably imply a reciprocal effort by poor families to link the benefits they receive to concrete actions on their part … this is independent of technical considerations

  13. Supply of CCTs: 3 Questions

  14. Supply of CCTs: 3 Questions 4. Do the target groups have access to good quality and complementary services?

  15. Final outcomes in CCTs are often worse because of inadequate supply • Most CCT evaluations find little effect on learning outcomes, even though school attendance increase • Longer exposure to Oportunidades program doesn’t improve learning scores (Behrman, Parker, Todd 2000 and 2005) • More years of schooling does not improve mathematics or language scores in Cambodia (Filmer and Schady 2009) • Most recently, overall school outcomes for elementary or middle school students in New York City’s Opportunity program did not increase despite increased school attendance • A major reason is the quality of schools (or clinics) may not be enough to improve outcomes just because of increased exposure • Distance may also matter – Oportunidades has less impact on children who live more than 4 km from a secondary school

  16. Is there adequate supply of quality schooling for disadvantaged groups? • “… the Roma schools are considered by most teachers as undesirable working places, as teaching and education here requires above average effort and results in less success. • … Although the teachers’ work in schools where the majority of students are Roma requires a lot more than average effort, the wages are just as low as in any other school.” • Source: Havas, Kemény and Liskó [2002], quoted in Kertesi and Kézdi [2005] 2007. Source: OECD 2010

  17. Some US welfare reforms have explicitly recognized multiple barriers • The most successful example was the Minnesota Family Independence Program (1994-98). Basic aim: To improve on the results on AFDC program in reducing poverty through work • Recognized, and addressed fact that welfare families faced multiple barriers: • Inadequate education • Poor work skills • Little work experience • Child care responsibilities • Transportation constraints • Physical, emotional, addiction issues • Therefore, paired employment opportunities with: • Increased support for skills improvement • Help with child care • Health care • Compared to AFDC as usual, MFIP stayed on welfare longer, but were less likely to be poor when they left; • Children’s outcome (attendance, performance, and health) improved

  18. CCT programs also address complementary factors • Chile Solidario program has psycho-social support to beneficiaries • Social workers work with families on action plans covering 53 “minimum conditions” along 7 dimensions: • Identification and legal documentation • Family dynamics • Education • Health • Housing • Employment • Income • In Mexico, Oportunidades conditions transfers on new or expecting parents participating in talks (pláticas) on parenting, hygiene and nutrition • Evidence that these have encouraged better diets and improved knowledge on health • Hungary already has introduced pre-schooling support to disadvantaged parents in January 2009, which will help

  19. Supply of CCTs: 3 Questions 4. Do the target groups have access to good quality and complementary services? 5. Is there enough information to be able to target transparently and set entry/exit rules?

  20. Proxy means tests to target can avoid labor supply disincentives • Associating eligibility to income thresholds can create labor disincentives (as had historically been found in US TANF and AFDC) • Proxy means, which use household datasets to “predict” which households are poor based on observable “proxies”, can reduce the disincentive • However, devising proxies when poor and non-poor households are too similar in characteristics can be difficult

  21. The poor are generally clustered together in Eastern European Countries Source: Tóth (TÁRKI EUROPEAN SOCIAL REPORT) 2008

  22. Supply of CCTs: 3 Questions 4. Do the target groups have access to good quality and complementary services? 5. Is there enough information to be able to target transparently and set entry/exit rules? 6. Are there no major overlaps with other cash transfers that may cause incentive ‘traps’?

  23. Incentive effect of CCTs muddied if too many programs transferring resources • In Mexico, part of the impetus to introduce CCTs was to remove and substitute for 15 broad price subsidies • Half of social funding went to subsidies for tortillas and bread, used by non-poor households • Little coordination across programs, inefficient duplication of administration, and no evaluation of effectiveness

  24. In 2006, cash transfer programs in Hungary included: • Old age pension • Disability benefits • Maternity Allowance (Terhességi-gyermekágyisegély): • Maternity Grant (Anyaságitámogatás): • Child Care Allowance (Gyermekgondozásisegély) • Child Care Fee (Gyermekgondozásidíj) • Child Raising Support: (Gyermeknevelésitámogatás) • Family Allowance (Családipótlék) • Advance on maintenance payments (Tartásdíj megelőlegezése) • Regular Child Protection Benefit (Rendszeresgyermekvédelmitámogatás) • Irregular Child Protection Benefit (Rendkívüligyermekvédelmitámogatás) • Family tax allowance (Családiadókedvezmény) • Regular social benefit (Rendszeresszociálissegély) • Nursing Fee (Ápolásidíj) • Old-age Allowance (Időskorúak járadéka) • Home Maintenance Support (Lakásfenntartásitámogatás) • Debt-management Benefit (Adósságcsökkentésitámogatás) • Public Health Benefit (Közgyógyellátás) • Temporary Benefit (Átmenetisegély) • Funeral Support (Temetésisegély) • Home renting support (lakbértámogatás) • Interest-free social loan (kamatmentesszociáliskölcsön) • Meals support (étkezésitámogatás) • Local transportation support (helyiutazásitámogatás) Source: TARKI (2006)

  25. Tax-welfare interactions also may give disincentives to work

  26. 6 CCCTs?6 Conditions for Conditional Cash Transfers Demand for CCTs Supply of CCTs • Structural poverty in families with children is a major concern • There is under-investment in core activities that can break the poverty cycle • There is shared political support for “mutual obligation” schemes • There is access to good quality services (schooling, clinics) available to the target groups • There is enough information to be able to target transparently and set entry/exit rules • There are no major overlaps with other cash transfers that may cause incentive ‘traps’

  27. Further information available at www.worldbank.org/socialprotection

More Related