Cash Transfers and Child Schooling: Evidence from a Randomized Evaluation of the Role of Conditionality

We conduct a randomized experiment in rural Burkina Faso to estimate the impact of alternative cash transfer delivery mechanisms on education. The two-year pilot program randomly distributed cash transfers that were either conditional (CCT) or unconditional (UCT). Families under the CCT schemes were required to have their children ages 7-15 enrolled in school and attend classes regularly. There were no such requirements under the unconditional programs. Results indicate that UCTs and CCTs have a similar impact increasing the enrollment of children who are traditionally favored by parents for school participation, including boys, older children, and higher ability children. However, CCTs are significantly more effective than UCTs in improving the enrollment of "marginal children" who are initially less likely to go to school, such as girls, younger children, and lower ability children. Thus, conditionality plays a critical role in benefiting children who are less likely to receive investments from their parents.