Transfer Payments, Mother's Income, and Child Health in Ecuador

Journal of Development Studies, Vol. 43, No. 6, pp. 1126-1143, October 2007

Posted: 21 Nov 2007

See all articles by Mauricio León

Mauricio León

Independent

Stephen D. Younger

Tulane University - CEQ Institute

Abstract

This paper evaluates the impact of the Bono Solidario, a transfer payment scheme in Ecuador, on children's nutritional status. In addition to testing for pure income effects, because the program transfers money to mothers of young children, we are able to test whether mother's income has a stronger effect on children's heights and weights than ordinary household income. Using simple quasi-reduced form estimates that control for the endogeneity of household expenditures and the choice to participate in the program, we draw two main conclusions: that the Bono Solidario transfer payment scheme has had a statistically significant but quite modest impact on children's nutritional status in Ecuador, and that this impact is no different than any other income effect on height and weight. In particular, the fact that the Bono is transferred to mothers has not made it more efficacious at reducing malnutrition than other household income. It is interesting to compare these results to Behrman and Hoddinott's (2001) evaluation of the impact of the PROGRESA transfer payment scheme in Mexico. Even though the size of the monetary transfer is similar in each program, both in absolute terms and as a share of household resources, Behrman and Hoddinott find much larger impacts of PROGRESA on children's heights than we find here. This contrast leads us to speculate that it is the non-income aspects of PROGRESA, particularly the required health care and public health lectures, which have had the larger effect on children's nutritional status. If that is true, then the Ecuadorian government's plan to begin to condition the Bono Solidario on health-seeking behaviors holds the promise of a more substantial impact on children's heights and weights.

Suggested Citation

León, Mauricio and Younger, Stephen D., Transfer Payments, Mother's Income, and Child Health in Ecuador. Journal of Development Studies, Vol. 43, No. 6, pp. 1126-1143, October 2007, Available at SSRN: https://ssrn.com/abstract=1031481

Stephen D. Younger

Tulane University - CEQ Institute ( email )

6823 St Charles Ave
New Orleans, LA 70118
United States

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