Heterogeneous Impacts of Conditional Cash Transfers: Evidence from Nicaragua

A study was conducted to determine heterogeneous effects of conditional cash transfers in Nicaragua. It was done with a unique data set from a social experiment in Nicaragua designed to evaluate a conditional cash transfer program targeted to poor rural households, the Red de Proteccion Social (RPS) or Social Safety Net. Compliance with program requirements was assured by not giving the transfer to beneficiaries if they failed to carry out the specified conditions. The estimates reveal that the positive program effect in per capita food expenditures and total per capita expenditures is smaller for households who are in the lower tail of the expenditure distribution. The estimates show that the households who had lower levels of food shares prior to the program were impacted more. Program effects are still positive for households with lower expenditures, though smaller than for households at the upper end of the distribution.