CCT wate to save: a study on the effect of the Pantawid Pamilyang Pilipino Program (4Ps) on the saving behavior households
Date
2018-05
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Abstract
The study explores the effect of Panatawid Pamilyang Pilipino Program (4Ps) on the savings
behavior of its household beneficiaries. Given that the 4Ps has already reached its maturity, we
find it important to investigate the sustainability of the program by seeking the households’
savings behavior. Since income is one of the most important determinants of savings, the study
answers the question: Does 4Ps encourage poor households to save more, given their higher
disposable income from cash transfers, or is there a need for direct intervention aimed at
improving the savings behavior of households?
The sample used was divided into two: restricted and unrestricted. The unrestricted sample
utilizes the complete Annual Poverty Indicators Survey (APIS) 2016 dataset while the restricted
sample limits the dataset to households belonging to the bottom three income deciles, which
makes the restricted sample more concentrated on the lower-income households. Using
propensity score matching, the results show that actual savings is statistically insignificant for
both samples used. One major finding, however, reveals that 4Ps beneficiaries are more likely
to avail a loan compared to non-beneficiaries.
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Keywords
conditional cash transfer, propensity score matching, savings, 4Ps