Labour Supply Effects of Conditional Transfers: Analyzing the Dominican Republic’'s Solidarity Program

Abstract

This paper studies the impact of the conditional cash transfer program Solidaridad on changes in the labor market of the Dominican Republic based on statistical data from the Evaluation of the Social Security Survey 2010. The estimation methodology is based on matching techniques, which can discern the impact on both benenefit-receiving and non-benefit-receiving households. The results show a negative but very small impact of the different components of the program on labor market indicators, especially for the components related to children. However, the estimates show some heterogeneity in the effects on the most vulnerable sectors of the population.

Keywords: Social Programs, Solidaridad, Labor Market, Conditional Cash Transfers

JEL Classification: H31, J08, J58