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July 9, 2007

Conditional Cash Transfers

Interest in Conditional Cash Transfers (CCTs) seems to be expanding.  According to Alain de Janvry (World Bank, Univ. of Cal.), CCTs are  cash transfers to a qualifying household or individual under a behavioral condition.  See, Proceedings of the 3rd International CCTs Conference (Videos and other material from the conference are available here). 

More info on CCTs can be found through the following resources:

NYC Mayor, and potential 3rd party Presidential candidate, Michael Bloomberg proposed in June a CCT system to provide educational, health, and workforce incentives.  Details of the incentives can be found here and the mayor's press release is here.  NYTimes coverage (Times Select required) is here, and the AP story via Fox News is here

Of course, all welfare that is not based on status (such as citizen stakes) alone can be characterized as CCTs, but the NYC plan does seek more particular behavioral improvements. 

(My own feeling about this is some skepticism, but that was recently tested by a family friend from a modest background who actively discourages the study habits of her hard working and academically talented son.)

-E.R. erosser@wcl.american.edu

July 9, 2007 | Permalink

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