Conditional cash transfer programs and household labor supply

Employment correlates with the reduced risk of poverty. Through a randomized controlled trial, we evaluate impact conditional cash transfer (CCT) program offered to low-income families dependent children on household members’ labor supply. Recipients are required attend labor-market-oriented mentoring courses as condition for receiving transfer. One year after admission program, fathers assigned CCT more likely work (+14 percent) than an unconditional or pure control group. No effect is observed mothers. Results seem be explained by improved family networks and increased investments, especially fathers, in activities that enhance market opportunities.