Direct and Indirect Effects of Social Transfers on Human Capital Accumulation

Andrés Mideros, UNU-MERIT / School of Governance

Social transfers are being broadly implemented in developing countries because of their direct distributional effects on poverty reduction and inequality decline. However, they also reduce the intergenerational transmission of poverty by promoting human capital accumulation. This paper evaluates the effect of the Ecuadorian Bono de Desarrollo Humano (BDH) on school attendance. Moreover, the effect on child marriage is evaluated as an indirect effect of social transfers on school attendance, but also as an independent child protection objective. Furthermore a cohort microsimulation model is used to evaluate possible reforms looking for a cost-effective design to achieve the goal of universal secondary education in Ecuador.

Discussant: Andrea Franco

Venue: Conference room, Keizer Karelplein 19, Maastricht

Date: 28 October 2014

Time: 15:30 - 16:15  CET