Does helping hurt? An evaluation of the Pantawid Pamilyang Pilipino Program and its effect on labor participation
Date
2018-05-04
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Abstract
This paper evaluates the impact of the Pantawid Pamilyang Pilipino Program (Pantawid) on labor force participation. Conditional cash transfers like Pantawid are asserted to induce laziness or dependency due to the increase in unearned income. The analysis is undertaken through a logistic regression using a pseudo-panel dataset derived from the Annual Poverty Indicators and Labor Force Surveys. Estimates from the labor participation model, measured in terms of being employed or not and average weekly work hours, show that CCTs per se does not foster dependency on social assistance, consistent with the previous studies done on CCTs in other countries. The results even show a significant positive effect on labor participation. However, there is a negative effect on the likelihood of working among urban beneficiaries but given the small marginal effect, the researchers believe that this may not necessarily be due to laziness but more likely to the existence of stronger competition for job opportunities in urban areas.
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Pantawid Pamilyang Pilipino Program, 4Ps, labor participation, conditional cash transfers