IMPACT of Cash Transfer Programs on School Attendance and Child Poverty: An Ex-ante Simulation for Sri Lanka

For countries assessing whether to implement a cash transfer program, an ex-ante evaluation is vital to assess its potential impacts. This study simulates the impact of alternative cash transfer programs on school attendance and poverty among Sri Lankan children. We find that cash transfer programs targeting poor children would be the most cost-effective way to reduce child poverty and encourage school attendance. If means-testing is not feasible, then programs targeting the children in households with at least three school-age children would provide a suitable second-best solution. Our findings suggest that even a limited program budget can provide significant impacts.