The Lasting Labor-Market Effects of Cash Transfers
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Published by Oxford University Press on behalf of the World Bank
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Can unconditional cash transfers have
long-term benefits for women’s employment in developing
countries This study exploits discontinuous exposure to the
South African Child Support Grant for mothers whose children
were born one year apart to identify the short- and
long-term effects of a positive income shock of roughly $400
($650 PPP in 2010). In the short term, there is a
considerable increase in the probability of being active and
looking for a job. Five years after receiving the transfer,
mothers who benefited for one year are as likely to be
employed as those who never received it; the type of
occupation is also similar, other than a small decrease in
work in the agricultural sector. Overall, the grant appears
to facilitate job search for single mothers in the presence
of high search costs, but does not significantly change job prospects.
Palabras clave
UNCONDITIONAL CASH TRANSFERS, JOB QUALITY, UNEMPLOYMENT, SOUTH AFRICA