The Impact of Cash Transfer Programmes on Youth and Adult Labour Supply: Evidence from Lesotho and the Philippines

Abstract

This study analyses the effect of cash transfers, aimed to increase children's human capital, on youth and adult labour supply. We provide novel results from the evaluation of two programmes: the conditional cash transfer Pantawid in the Philippines and the unconditional cash transfer Child Grant Programme in Lesotho. The transfers did not discourage youth and adult work. However, marginal adjustments emerged: the Child Grant Programme decreased youth and adult occasional work, representing the last resort to cope with income vulnerability; the Pantawid did not influence youth work but increase adult wage work, with a reduction of family work, indicating that the transfer decreased transaction costs associated with labour market access. © 2018 John Wiley & Sons, Ltd.

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