Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood : Evidence from a Randomized Experiment
A variety of theories of skill formation suggest that investments in schooling and other dimensions of human capital will have lower returns if children do not have adequate levels of cognitive and social skills at an early age. This paper analyzes...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/10/9971523/cash-transfers-behavioral-changes-cognitive-development-early-childhood-evidence-randomized-experiment http://hdl.handle.net/10986/6926 |
| Summary: | A variety of theories of skill formation
suggest that investments in schooling and other dimensions
of human capital will have lower returns if children do not
have adequate levels of cognitive and social skills at an
early age. This paper analyzes the impact of a randomized
cash transfer program on cognitive development in early
childhood in rural Nicaragua. It shows that the program had
significant effects on cognitive outcomes, especially
language. Impacts are larger for older pre-school age
children, who are also more likely to be delayed. The
program increased intake of nutrient-rich foods, early
stimulation, and use of preventive health care-all of which
have been identified as risk factors for development in
early childhood. Households increased expenditures on these
inputs more than can be accounted for by the increases in
cash income only, suggesting that the program changed
parents' behavior. The findings suggest that gains in
early childhood development outcomes should be taken into
account when assessing the benefits of cash transfer
programs in developing countries. More broadly, the paper
illustrates that gains in early childhood development can
result from interventions that facilitate investments made
by parents to reduce risk factors for cognitive development. |
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