Cash Transfer impacts on Labour supply for People Living in Poverty

Details

Supervisors

Buno Van der Linden

Faculty

Faculté des sciences économiques, sociales, politiques et de communication

Degree label

Master [120] en sciences économiques, orientation générale

Abstract

In this paper, one can find a study of the Income effect and “reallocation effect” of a Conditional Cash Transfer called “Juntos”, implemented in Peru. The transfer is subject to conditions linked to health and education, it targets people living in poverty. The focus also lies on a subsample where the conditionalities are not a constraint in order to get “pure income effects”. The results show that the “pure income effect” caused by the transfer is consistent to the theory for men (men decrease their labour supply) but nor for women. Results show that the “reallocation effect” is consistent to the theory for women (women increases their labour supply).