Social protection programmes are now implemented in many low and middle
income countries due to their efficacy in reducing poverty,
vulnerability, and inequality. However, the literature is scarce
regarding long-term effects of social transfers. Using administrative
panel data, this study analyses the determinants of social mobility in
Ecuador using a multivariate welfare index, and evaluates the effect of
the Ecuadorian social transfer programme Bono de Desarrollo Humano
(BDH). Results show that social policies should focus on vulnerabilities
related to household composition, the accumulation of human capital, and
the accumulation of durable goods. Complementary policies must address
gender, ethnic and geographical equity, as well as reproductive health.
Finally, we find that the BDH does foster social mobility, especially
for higher per capita amounts and if the transfer is complemented with
economic inclusion programmes.
Keywords: Social mobility, social transfers, human development, poverty and inequality
JEL Classification - H24, I31, I38, O20