Cash Transfers and Children's Education and Labour among Malawi's Poor

This article examines the impact on children's education and labour of monthly cash grants targeted on ultra‐poor households and designed to reduce poverty and enable families to invest in human development. It conducts a randomised community trial, with baseline and endline surveys of intervention and control households; verifies school enrolment; and completes key‐informant interviews and focus‐group discussions. Compared with non‐beneficiaries, intervention children experienced a 5 percentage point difference in enrolment, higher educational expenditures, fewer absences, and a 10 percentage point decrease in labour outside the home. Qualitative data confirm the quantitative findings. Transfers to poor households had a positive impact. However, the Malawian educational system needs to be improved for short‐term impacts to lead to long‐term development in human capital.     

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 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.     

The political viability of a negative income tax

This paper offers three propositions relating to the political viability of the negative income tax. One, despite its work disincentive, a majority of households would support a linear income tax that makes cash payments to low income households. However two, when government consumption is sufficiently high, a majority would favor a proportional tax over such a tax. Three, under certain conditions, a majority of households will prefer public provision of a private good or an in-kind transfer to a negative income tax. These latter two propositions offer an explanation for the public's apparent distaste for widespread cash transfers. Received: 17 September 1999/Accepted: 21 April 2000     

Not by Rent Alone: Analysing the Pro‐Poor Functions of Small‐Scale Fisheries in Developing Countries

The dominant view in academic and policy arenas is increasingly one in which the major contribution of capture fisheries to development should be derived from the capacity of society to maximise the economic rent of fishery resources. Drawing upon empirical experience from the South, this article highlights the potentially disastrous consequences that a universal implementation of the rent‐maximisation model would have in developing countries, and argues that a more gradual approach would be preferable. The welfare function of small‐scale fisheries, namely, their capacities to provide labour and cash income to resource‐poor households, should be preserved until the appropriate macroeconomic conditions for rent‐maximisation and redistribution are fulfilled.     

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.     

How Much In‐Kind Support Do Low‐Income Nonresident Fathers Provide? A Mixed‐Method Analysis

Past child support research has largely focused on cash payments made through the courts (formal support) or given directly to the mother (informal support) almost to the exclusion of a third type: non‐cash goods (in‐kind support). Drawing on repeated, semistructured interviews with nearly 400 low‐income noncustodial fathers, the authors found that in‐kind support constitutes about one quarter of total support. Children in receipt of some in‐kind support receive, on average, $60 per month worth of goods. Multilevel regression analyses demonstrated that children who are younger and have more hours of visitation as well as those whose father has a high school education and no current substance abuse problem receive in‐kind support of greater value. Yet children whose fathers lack stable employment or are Black receive a greater proportion of their total support in kind. A subsequent qualitative analysis revealed that fathers' logic for providing in‐kind support is primarily relational and not financial.     

Capacity development for food policy analysis: What works best? Adding evidence from IFPRI's experience

This article presents major results of a meta‐assessment of experience of the International Food Policy Research Institute (IFPRI) with different kinds of capacity strengthening (CS) activities for food policy analysis. Collaborative research, on‐the‐job‐training, and ID support for building data systems and analysis came up as best‐practice approaches. Equally successful were new initiatives such as visiting fellow programmes, thesis support schemes, and delivering CS work embedded in country or thematic programmes. Challenges emerged as well: how to address the low CS impact of formal training and work with local collaborators, the uncertain results for outreach and strengthening capacity of organizations over individuals, especially in the policy cycle, and the best way to enter into partnerships and create incentives to deliver and sustain CS. Some policy implications are indicated.     

Invisible Development? Remittances for Housing and Transnational Reproduction Strategies among Migrant Households in Colombia

In recent years, the Colombian government has embraced the migration‐development agenda by designing programmes to channel remittances to key sectors such as housing and finance,in an attempt to institutionalise migrant households’ transnational economic practices. However, little is known about migrant households’ multifaceted transnational practices, their broader impact on households’ and localities’ socioeconomic development and migrants’ engagement with these migration‐for‐development programmes. Drawing on qualitative data collected along the Colombia‐UK migration network, this paper contrasts the narrow interpretation of development that underpins the migration‐development agenda, as exemplified by the remittances‐for‐housing programmes implemented in Colombia, with the more nuanced social and economic contributions that remittance‐financed housing investments have for migrant households’ and communities’ socioeconomic development. Thus, it provides a more nuanced interpretation of development to account for the often invisible, socioeconomic spinoffs that occur in the process of migrant households’ attempts to produce and reproduce their livelihoods transnationally.     

Participation and Impact of Poverty‐oriented Public Works Projects in Rural Malawi

This article reports on factors influencing participation in the poverty‐oriented public works programme in rural Malawi and analyses the determinants of the revealed positive socio‐economic impact among the participants. The programme targets poor households through self‐selection by offering a wage below the official minimum for rural areas. The empirical results show that most participants are poor and with little education. Probability of particpation is higher for members of female‐headed households and households with longer periods of food insecurity, excess supply of labour, few assets and reservation wages below the wage offered in the programme. Taking account of selectivity bias, the impact of the programme increases with the gender (female) of participants and the numbers per household participating.     

The Burden of Deportation on Children in Mexican Immigrant Families

In 2011, a record number of foreign‐born individuals were detained and removed from the United States. This article looks at the impact enforcement policies have had on Mexican families more broadly and children specifically. Drawing on interviews with 91 parents and 110 children in 80 households, the author suggests that, similar to the injury pyramid used by public health professionals, a deportation pyramid best depicts the burden of deportation on children. At the top of the pyramid are instances that have had the most severe consequences on children's daily lives: families in which a deportation has led to permanent family dissolution. But enforcement policies have had the greatest impact on children at the bottom of the pyramid. Regardless of legal status or their family members' involvement with immigration authorities, children in Mexican immigrant households describe fear about their family stability and confusion over the impact legality has on their lives.     

INVESTMENT AND THE NOMINAL INTEREST RATE: THE VARIABLE VELOCITY CASE

Models treating money either as a consumer good or as a producer good are encompassed by a model in which both households and firms use money as a buffer between receipts and expenditures. A rise in nominal interest rates increases resources devoted to intermediation, while discouraging purchases financed from accumulated cash. If investment is financed from contemporaneous earnings, there is a tendency to substitute out of consumption and into investment when interest rates are high. Greater resources devoted to intermediation generate a negative wealth effect. The net impact on investment is ambiguous.     

One Year On: Perceptions of the Lasting Benefits of Involvement in a Parenting Support Programme

The availability of parenting support programmes has increased significantly within the UK over the last decade. Most evaluations of these programmes have focused on short‐term outcomes. The present study attempted to gain a longer term perspective by interviewing 20 carers more than 12 months after completing a group‐based programme. The results obtained using thematic analysis showed that the majority of participants felt the programme had had lasting effects on their ability to manage their children's behaviour and empowered them as adults. The key themes to emerge in the interviews were: the maintenance of parenting skills, the need for perseverance, strengthening of support networks and encouragement for further provision of programmes. It is argued that evaluation of support programmes should focus on more than parenting skills by assessing their impact on participants’ wider lives.     

Immigrants,Natives and Social Assistance: Comparable Take‐Up Under Comparable Circumstances

Are immigrants on welfare because they are more likely to be eligible or because they are more likely to claim benefits for which they are eligible? The answer is politically important, but because most current research on immigration and welfare is based on data from the United States, the answer is difficult due to the complexities of the transfer system which make eligibility determinations difficult. In Germany, by contrast, eligibility for the main cash transfer program, Sozialhilfe (Social Assistance), is determined by a comparatively simple nationwide formula. We use data from the German Socio‐Economic Panel to test whether immigrants to Germany are more likely than natives to claim welfare benefits for which they are eligible. We find that immigrants are more likely than native Germans to receive welfare, both because immigrants are more likely to be eligible and because they are more likely, when eligible, to claim their benefits. However, we also find that this greater propensity to take‐up benefits is not related to immigrant status per se: when other sociodemographic factors are accounted for in an appropriate manner, immigrant households are no more likely to take‐up benefits than native households.     

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%.     

Have cash transfers succeeded in reaching the poor in Latin America and the Caribbean?

We present original estimates of the quality of targeting of conditional cash transfer (CCT) and non‐contributory pension (NCP) programmes in Latin America and the Caribbean. Our contribution is novel because we use both national and international poverty lines; provide differentiated estimates for urban and rural areas; and compare the CCT and NCP programmes. We show that leakage to the non‐poor coexists with pervasive under‐coverage of all poor, including the extreme poor. On average, the CCTs cover only 50.5% of the extreme poor in households with children under 18 years of age. Similarly, the NCPs cover only 50.9% of the extreme poor in households with elderly members who do not receive a contributory pension. At the same time, 40.4% of CCT beneficiaries and 50.1% of NCP beneficiaries are not poor, highlighting the potential need for re‐targeting and re‐certification. In most countries, re‐targeting could produce a substantial double benefit in terms of poverty reduction and fiscal savings.     

ENERGY USE AND TEMPERATURE HABITUATION: EVIDENCE FROM HIGH FREQUENCY THERMOSTAT USAGE DATA

Using micro‐level thermostat data from 27,000 U.S. households, we analyze how home heating/cooling decisions respond to weather. Responses are greater for extreme heat than for extreme cold and persist for at least 30 days after exposure, due in part to transaction costs but also to changes in intrinsic preferences. Failure to understand habit can lead us to overestimate the impact of short‐term policy nudges but underestimate the long‐run impact of small changes. Higher frequency estimates of how behavior responds to weather improve our understanding of climate adaptation as climate change affects not only mean temperatures but also variances. (JEL C55, D03, Q4)     

Occupational Destinations and Economic Mobility of Filipino Overseas Workers1

This study examines employment and occupational shifts experienced by Filipino overseas contract workers in the transition from country of origin to country of destination and examines the impact of labor migration on economic conditions and standard of living of the families left behind. Data for the analyses were obtained from a representative sample of 2,346 households drawn from four primary sending areas in the Philippines. The analyses focus on characteristics of the households and of the household members employed overseas. The findings reveal that a considerable number of overseas workers (both men and women) were unemployed prior to migration and that the overwhelming majority of these workers were recruited to fill low‐status (manual and service) occupations in the host country. The analysis demonstrates that the odds for Filipino overseas workers to be employed in low‐status occupations were extremely high, net of human capital characteristics, net of the occupations they held in the Philippines, and net of country of destination. Further analysis reveals that overseas employment is associated with a substantial increase in earnings (five‐fold for men and four‐fold for women). Comparison between households with and without overseas workers reveals that, net of household characteristics, the flows of income earned abroad are used to purchase household goods to improve standard of living. These findings provide firm support to expectations derived from the household theory of migration according to which labor migration is a strategy adopted by the household unit to allocate family resources rationally to increase the flows of income in order to raise the family standard of living.     

Targeting and child poverty

We examine the relative merits of targeting children within the household through price subsidies and cash transfers. To do so, we model the behavior of a household composed of one adult and one child. We then show that ‘favorable’ distortions from price subsidies may allow redistributing toward the child and then derive the conditions under which this redistributive scheme is more efficient than cash transfers. The framework is extended to account for possible paternalistic preferences of the social planner and for households composed of two adults with different preferences. Applied to a continuum of households, our approach is extended to the problem of child poverty alleviation. In contrast to the traditional view, we show that well-chosen subsidies may be more cost effective than cash transfers in reducing child poverty.     

CHARITIES, NO; LOTTERIES, NO; CASH, YES: MAIN EFFECTS AND INTERACTIONS IN A CANADIAN INCENTIVES EXPERIMENT

The effects on response rates to mail surveys of prepaymentcash incentives, charitable donations, and the chance to wina lottery prize are examined in a true experimental design.A survey on environmental issues was conducted during the fallof 1994 among 3,088 households drawn from the Grand River watershedregion of southwestern Ontario, Canada. The 20-cell incentivesexperiment crossed three levels of prepaid monetary cash incentive($2, $5, and $10) with a control group (no cash incentive),plus the offer to make a charitable donation ranging from $2to $10 on behalf of the respondent, or participation in a lotteryfor prizes of $200. The overall response rate to the survey,with three follow-ups, was 70.7 percent with the effects ofthe prepaid cash rewards demonstrated, but not those for thelottery or charitable donations. Logistic regression analysisof response rate supports a main effects model for cash incentivesbut does not support either of two alternative models for maineffects of the lottery and charitable donations or interactions.Further analysis demonstrates a pattern of earlier responseas a result of prepaid incentives. The findings are discussedin terms of their cost-benefit implications and with respectto conceptualizations of respondents' motives for completingmail questionnaires.