Household Structure and Short‐Run Economic Change in Nicaragua

During the economic crises Nicaragua suffered between 2000 and 2002, a conditional cash transfer program targeting poor households began operating. Using panel data on 1,397 households from the program's experimentally designed evaluation, we examined the impact of the program on household structure. Our findings suggest that the program enabled households to avoid reagglomeration during the economic crises, with households in control communities growing more than treated households. These changes were driven primarily by shifts in residence of relatively young men and women with close kinship ties to the household head. In contrast, households that received transfers continued to send off young adult members, suggesting that the program provided resources to overcome the short‐term economic pressures on household structure.     

The schooling repayment hypothesis for private transfers: evidence from the PROGRESA/Oportunidades experiment

The schooling repayment hypothesis for private transfers predicts a positive relationship between the amount of parental investment in children’s education and the amount that adult children transfer to their parents. We provide evidence on the repayment motive using data from the Mexican conditional cash transfer program PROGRESA/Oportunidades (PO). PO pays a transfer to parents for sending their children to school. Thus, if private transfers from adult children to parents are in part repayment for parental schooling investments made in the past, then PO should decrease these transfers—parents were already exogenously compensated by the government for sending their kids to school and not to work. Exploiting the exogenous variation in the amount of cash transfers a household receives from PO for sending its children to school, we compare the private transfers received in 2007 by parental households who had children 0–16 in 1997 and started receiving the programs’ benefits in 1998 with the transfers received by similar parental households who started receiving benefits in 1999. Results suggest a repayment motive exists. That is, PO is causing adult children to transfer less resources to their parents.     

The social consequences of unemployment in hungary—a household perspective

In this article the following hypotheses are tested using the Hungarian Household Panel Survey and the SOCO data: (a) Poverty is more likely to be felt by ‘unemployed’ households (i.e. households in which one or more members are unemployed) than by ‘non‐unemployment’ households (i.e. households in which none of the members are unemployed); and (b) A household is more likely to be poor if the head of the household becomes unemployed rather than if the spouse or one of the elder children do. The analysis shows that unemployment is closely related to all aspects of poverty (e.g. income, expenditure, and subjective‐poverty), but this association is especially strong in the case of income. It also demonstrates that poverty is more likely when the head of the household, rather than any other member of the household, becomes unemployed. After controlling for all variables we see that when the head of the household becomes unemployed the probability of being poor increases only with regard to income‐ and subjective‐poverty. Wealth‐ and housing‐poverty are not influenced by unemployment in the household. By comparison, in the other Central European countries, when the head of the household becomes unemployed, the probability of being poor increases in all aspects of poverty. This finding suggests that unemployment in Hungary seems to be less devastating than in other post‐socialist countries.     

Subjective poverty equivalence scales for Euro Zone countries

We estimate subjective equivalence scales for the whole Euro Zone as well as its individual constituent countries using the European Income and Living Conditions (SILC) data. Importantly, by using minimum needs income question our approach does not require the specification of a complete social welfare function. Our subjective scales increase consistently with household size and countries with well-developed welfare states (Netherlands, Germany, France, and Belgium) show greater economies of scale than less developed welfare states (Spain, Portugal, and Greece). Our approach also allows us to estimate the marginal cost of a child; we find that for the Eurozone adding the first child is more costly than adding a third adult and that the marginal cost of children declines. Comparing modified OECD and our subjective poverty rates we find that the subjective scales ‘redistribute poverty’ away from larger to smaller households.     

How would cash transfers improve child welfare in Viet Nam?

This paper was aimed to estimate how cash transfer to children could help increase access to education and health services as well as to reduce their poverty. To pursue these objectives, we first applied fixed-effect regression models with a panel data from Vietnam Household Living Standard Survey (VHLSS) in 2010 and 2012, and then used the predicted results to simulate how welfare indicators would have been changed if children were provided benefits at different levels. We found that cash transfers would have a positive effect on school enrolment and poverty. However, cash transfers would have no significant effects on both impatient admissions and outpatient visits as well as out-of-pocket spending on health care, but a significant effect on the probability of having health insurance. From these findings, we proposed some policy recommendations such as promoting cash transfer program for more vulnerable groups of children would provide opportunities for them to further reduce poverty and increase access to education and health. More importantly, the research emphasized that quality of services to be provided along with cash transfers should also be guaranteed, so as to make sure that the current benefits will be fully translated into socio-economic development of Viet Nam.     

There’s no such thing as a free lunch: evidence of altruism and agency from household expenditure responses to child nutrition programs

Transfers for particular client groups such as children are often in-kind rather than cash. However, this may, at least partially, crowd out private expenditures on the goods in question because they reduce the incentive for other individuals, like parents, to make altruistic transfers. They are often made to one household member on behalf of another so there may also be agency concerns. This paper uses three nutrition programs for children in UK households to cast light on altruism and agency effects.     

The impacts of the food,fuel and financial crises on poor and vulnerable households in Nigeria: A retrospective approach to research inquiry

This article examines the impacts of the financial, food and fuel crises on poor and vulnerable households in two states of Nigeria: Lagos and Kano. It uses retrospective household‐level data to analyze the impacts of induced price variability on household welfare. The results indicate that aggregate shocks have significant adverse effects on household consumption, schooling and child labour decisions, with a degree of impact heterogeneity across regions and rural and urban areas of the country. We find that the coping strategies adopted by the poor to deal with the short‐term effects of the crises can lock households in a low‐income equilibrium or poverty trap. Provided that covariate shocks exacerbate these effects, they become central for policy design.     

The Use of Remittance Income in Mexico

Immigration affects sending countries through the receipt of remittance income. The impact of these cash transfers on households and communities has brought attention to remittances as a development mechanism. This study attempts to understand the degree to which household consumption is affected by the receipt of remittance income and the ways in which the broader communities may be impacted. Using household income and expenditure data for Mexico, expenditure patterns of remittance‐receiving households are analyzed. Regression analysis indicates that remittance‐receiving households spend a greater share of total income on durable goods, healthcare, and housing.     

Urban poverty and labor market dynamics in five Latin American countries: 2003–2008

Latin America experienced a long period of sustained growth since 2003 that positively impacted social and labor market indicators, including poverty. This paper contributes to the understanding of this process as it carries out a comparative study of poverty dynamics in five Latin American countries during 2003–2008. It analyzes the extent to which countries with different levels of poverty incidence diverge in terms of poverty exit and entry rates, identifies the relative importance of the frequency and impact of events associated to poverty transitions and examines how these events affect households with different characteristics. For this, a dynamic analysis of panel data is carried out using regular household surveys. Sizeable rates of poverty movements were observed in all five countries and it was found that a large proportion of household experienced positive events, mainly related to the labor market; however, only a small fraction of them actually exited poverty. Demographic events and public cash transfers proved to be of little relevance; in particular, the latter did not contribute much either to intensify poverty exits or to prevent poverty entries. Households with children experienced more (less) negative (positive) events than those without children. It appeared therefore that even when the economy behaved reasonably well at the aggregate level, high levels of labor turnover and income mobility (even of a negative nature) still prevail, mainly associated to the high level of precariousness and the undeveloped system of social protection that characterize the studied countries.     

Household Composition and Poverty among Female‐Headed Households with Children: Differences by Race and Residence*

Abstract We examine race and residential variation in the prevalence of female‐headed households with children and how household composition is associated with several key economic well‐being outcomes using data from the 2000 5% Public Use Microdata Sample of the U.S. Census. Special attention is paid to cohabiting female‐headed households with children and those that are headed by a single grandmother caring for at least one grandchild, because these are becoming more common living arrangements among female‐headed households with children. We find that in 2000: (1) cohabiting and grandmother female‐headed households with children comprised over one‐fourth of all female‐headed households with children, (2) household poverty is highest for female‐headed households with children that do not have other adult household earners, (3) earned income from other household members lifts many cohabiting and grandparental female‐headed households out of poverty, as does retirement and Social Security income for grandmother headed households, and (4) poverty is highest among racial/ethnic minorities and for female‐headed households with children in nonmetro compared to central cities and suburban areas.     

Program participation in a targeted land distribution program and household outcomes: evidence from Vietnam

We estimate whether a land reform program led to higher incomes for ethnic minority households. In 2002, in the Central Highlands of Vietnam, Program 132 directed the transfer of farm land to ethnic minority households that had less than one hectare of land. Using the 2002 Vietnam Household Living Standards Survey as a baseline, in 2008 we resurveyed over one-thousand households to provide a retrospective evaluation of the impact of their participation in Program 132. Contrary to official reports, our findings show that there was considerable deviation from the planned program parameters: many eligible households did not receive land, while ineligible households often did. We estimate that beneficiaries of the program in the province of Kon Tum experienced increases of household income largely in line with what one would expect from a small plot of poor farm land. Outside Kon Tum, where participation rates were substantially lower, the story is more mixed, and household incomes did not improve with program participation. Overall, our results underscore the limitations of simple transfers of land as a mechanism for improving the living standards of ethnic minorities. Our results also show the significant gap that can exist between program design and decentralized implementation. We discuss the potential implications for program evaluation.     

Participation in the National School Lunch Program and food security: An analysis of transitions into kindergarten

We use variation in state kindergarten eligibility dates to explore the protective effects of NSLP participation on household food security by focusing on the research question: What is the impact of the NSLP on household food insecurity among households with a kindergarten-aged child in the Early Childhood Longitudinal Study — Birth cohort (ECLS-B)? Our modeling approach provides consistent support for the contention that the NLSP reduces food insecurity. Additionally, we find that paying full price for school lunch is associated with increases in food insecurity among our low-income sample. Sensitivity analysis demonstrates that controlling for the reduction in child care hours among low-income households does not diminish the size of the NSLP effect. Additionally, school entry is not associated with reductions in food insecurity among families whose incomes are above 185% of the federal poverty line. Finally, our findings are robust to excluding twins. This finding is consistent with a growing literature documenting the benefits of school lunch programs but is unique for the focus on the period of school entry, at time when behavioral and cognitive patterns of school outcomes are being established for the future.     

Altruism and monetary transfers in the household: inter- and intra-generation issues

The literature on altruism and monetary transfers in the household is here extended with new and recent evidence on different approaches with the final aim being to provide policy recommendations in order to reduce socio-economic inequality among households, from both inter- and intra-generational perspectives. Thus, we include issues which deal with transfers from parents to kids (downstream transfers), and with transfers from kids to parents (upstream transfers). On the other hand, we also include issues from intragenerational transfers beyond the household, studying such phenomena as charitable donations and remittances from migrants.     

Taking Pressure Off Families: Child‐Care Subsidies Lessen Mothers’ Work‐Hour Problems

We use the Philadelphia Survey of Child Care and Work to model the effect of child‐care subsidies and other ecological demands and resources on the work hour, shift, and overtime problems of 191 low‐income urban mothers. Comparing subsidy applicants who do and do not receive cash payments for child care, we find that mothers who receive subsidies are 21% less likely to experience at least one work hour–related problem on the job. Our results suggest that child‐care subsidies do more than allow women to enter the labor force. Subsidies help make it easier for mothers in low‐wage labor both to comply with employer demands for additional work hours and to earn the needed wages that accompany them.     

Can Trade Help Poor People? The Role of Trade,Trade Policy and Market Access in Tanzania

Many development economists prescribe trade as a poverty‐reducing formula. But how is this elixir supposed to work? This article contributes to the lively debate on this topic with household evidence from Tanzania — a poor country even within sub‐Saharan Africa, the poorest region. About 81% of the poor work in agriculture, which accounts for 88% of the export bundle. The article describes existing poverty and then evaluates the poverty‐reduction potential of trade, trade policy and market access. The article extends the analysis by simulating tariff changes and four switching scenarios that swap some poor households into trade‐related sectors, such as cash cropping or tourism, to project national poverty reductions of up to 5.6% and household income increases of up to 21.5%.     

CHILD LABOR AND SCHOOLING RESPONSES TO ACCESS TO MICROCREDIT IN RURAL BANGLADESH

Microcredit has been shown to be effective in reducing poverty in many developing countries. However, less is known about its effect on human capital formation. In this article, we examine the impact of access to microcredit on children's education and child labor using a new and large data set from rural Bangladesh. The results show that household participation in a microcredit program may increase child labor and reduce school enrollment. The adverse effects are more pronounced for girls than boys. Younger children are more adversely affected than their older siblings and the children of poorer and less educated households are affected most adversely. Our findings remain robust to different specifications and methods, and when corrected for various sources of selection bias. (JEL H43, I21, J13, J24, L30, O12)     

Household Structure and Living Conditions in Nigeria

Data on 7,632 households from the 1999 Nigeria Demographic and Health Survey are used to examine household structure and living conditions in Nigeria. The study finds significant disadvantage in living conditions of single‐adult, female‐ and single‐adult, male‐headed households relative to two‐parent households. Extended households show no significant advantage in living conditions over two‐parent households if headed by women but are consistently advantaged if headed by men. Although extended households do not entirely wipe out the disadvantage of female headship on household living conditions, they show a significant mitigating potential. Efforts to understand and alleviate poverty in Nigeria may need to address simultaneously gender imbalances in access to livelihood opportunities and factors that foster nucleation of family structure into single‐adult households.     

Prevalence and economic well-being of families raising multiple children with disabilities

This study estimates the prevalence of households raising more than one child with disabilities, and examines these families' economic well-being. Using pooled data from the 2004 and 2008 Survey of Income and Program Participation we compare households with multiple children with disabilities (n = 932) to households with one disable child (n = 3457) and to households with at least one child but none with disabilities (n = 21,378) on measures of material hardship. Three percent of U.S. households with children had more than one disabled child. Compared to other households with children, those with multiple children with disabilities were significantly more likely to have income below the federal poverty level and to report material hardships. The number of children with disabilities is an important contextual variable for studying the economic circumstances under which, care is provided to children with disabilities. Its implications for practice and policy are discussed.     

THE LONG‐TERM EFFECTS OF CONDITIONAL CASH TRANSFERS ON CHILD LABOR AND SCHOOL ENROLLMENT

This paper investigates the long‐term effects of conditional cash transfers on school attainment and child labor. To this end, we construct a dynamic heterogeneous agent model, calibrate it with Brazilian data, and introduce a policy similar to the Brazilian Bolsa Família. Our results suggest that this type of policy has a very strong impact on educational outcomes, sharply increasing primary school completion. The conditional transfer is also able to reduce the share of working children from 22% to 17%. We then compute the transition to the new steady state and show that the program actually increases child labor over the short run, because the transfer is not enough to completely cover the schooling costs, so children have to work to be able to comply with the program's schooling eligibility requirement. We also evaluate the impacts on poverty, inequality, and welfare. (JEL O11, I25, J24)     

Impacts of male outmigration on women: a case study of Kutum / Northern Darfur / Sudan

This case study of 313 households in the Kutum area in Western Sudan focuses on female headed households with migrant husbands. Free leases of land by women were common. 65% of the sample owned fields, and over 50% had home gardens in town. Among villagers 94% owned fields, and 74% had additional gardens. 28.3% of town owners of fields or gardens employed seasonal wage laborers, of whom 33% were female workers. None of the villages hired agricultural laborers. Labor shortages appeared only during weeding times. Fields were cultivated and housing was repaired mostly by unpaid female labor: a gender-specified role. Strategies for preventing poverty included cash crop cultivation, petty trade, sales of property, seasonal wage labor, and migration. The number of agricultural wage workers increased during famines. Findings show that 69 men migrated to Arab countries and 35 to other areas outside Darfur. 62.5% of the 115 migrants were married, and 20.8% did not send remittances home after more than a 6 months absence. 46.5% of unmarried migrants did not send remittances. 15.6% of the 77 rural women were dissatisfied with remittances. 21.5% of 121 migrants were away for more than a year; 66.1% were away 2-5 years. 12.4% were gone for more than 5 years. Irregular remittances were attributed to high urban living costs, to irregular means of sending money, and to saving for a family chaperone. Remittances satisfied immediate consumption needs. Outmigration was not really a survival strategy but an anti-destitution measure. Higher wage rates were not considered a primary motive for outmigration. Under drought conditions strategies included development of gardening for food and cash production. Out migration resulted in female household heads, in the need for cash income for supplementary items, in an increased work load including the men's activities, in women as the main food producers and thus more subject to environmental effects, and in overwork, which reduced input in children's education and domestic tasks. 37% of El-Tahir women with migrating spouses had trouble meeting basic needs, 25.6% had shortages of family labor, and 17.4% had difficulty with child rearing. Migrants' wives who were separated from extended families suffered from loss of social prestige and income. Women regardless of class or educational level were considered inferior to men. Women's influence was at the individual, household, and informal group level.