On the Design of Education Conditional Cash Transfer Programs and Non-Education Outcomes: The Case of Teenage Pregnancy

Abstract

We investigate the effect of education Conditional Cash Transfer programs (CCTs) on teenage pregnancy. Our main concern is with how the size and sign of the effect may depend on the design of the program. Using a simple model we show that an education CCT that conditions renewal on school performance reduces teenage pregnancy; the program can increase teenage pregnancy if it does not condition on school performance. Then, using an original data base, we estimate the causal impact on teenage pregnancy of two education CCTs implemented in Bogotá (Subsidio Educativo, SE, and Familias en Acción, FA); both programs differ particularly on whether school success is a condition for renewal or not. We show that SE has negative average effect on teenage pregnancy while FA has a null average effect. We also find that SE has either null or no effect for adolescents in all age and grade groups while FA has positive, null or negative effects for adolescents in different age and grade groups. Since SE conditions renewal on school success and FA does not, we can argue that the empirical results are consistent with the predictions of our model and that conditioning renewal of the subsidy on school success crucially determines the effect of the subsidy on teenage pregnancy.

Adolescent pregnancy, public policies, and targeted programs in Latin America and the Caribbean: a systematic review

“…Another set of comparative studies explored whether the conditions established within the CCT programs can explain the variations in adolescent pregnancy. One of these studies explored the impact of different conditions of CCTs implemented in Bogotá, Colombia ( 25 ), where one policy conditioned certain benefits to the completion of high school while the other did not. Using a representative survey, the study authors found that school performance requirements had a positive effect on reduced teenage pregnancy, versus attendance requirements alone, which had no effect.…”