| Resumen: |
The benefits of cash transfers have been extensively studied in the literature, but a significant gap remains concerning the consequences of losing these welfare payments. This paper evaluates the effects of losing the unconditional cash transfer Bono de Desarrollo Humano (BDH) on education and labor outcomes, using two waves of the Ecuadorian Registro Social (RS) database from 2014 and 2018. We follow the regression discontinuity design proposed by Dong (2019), controlling for sample selection due to the high level of attrition in our sample. Our results show that losing the BDH has a negative impact on school attendance and increases the probability of becoming a NEET (not in education, employment, or training), particularly among young women. In addition, the likelihood of joining the labor force increases, especially for men. We finally explore the reasons behind these effects, particularly strong on non-compulsory education aged individuals. These findings suggest that governments should exercise caution as households transition out of cash assistance programs. |
