October 2009

IZA DP No. 4475: Oportunidades: Program Effect on Consumption, Low Participation, and Methodological Issues

published in: Economic Development and Cultural Change, 57:3, 479-506, April 2009.

In this paper we estimate the effect of the Mexican conditional cash transfer program, Oportunidades, on consumption, and we explore some issues related to participation to the program and to the estimation of treatment effects. We discuss the comparability of treatment and control areas, provide evidence that the expected transfer may not be sufficiently high to induce many eligible households to participate, and find positive effects on consumption.