Unconditional cash transfers (UCTs) have become a worldwide tool for poverty alleviation and social protection. In this study, we examine the impact of a one-year UCT program on children’s work and schooling outcomes in Turkey. More specifically, we study the short-term effects of unconditional cash transfers on children’s work and schooling. The Family Support Program (FSP) cash support was introduced in 2022 to provide a modest cash transfer to low-income families. The program eligibility is determined by a per capita family income threshold. We exploit this discontinuity in program eligibility and show that the cash transfers led to a decrease in the likelihood of children working in their family’s businesses within six months. There is also suggestive evidence that the likelihood of children working in agriculture declines. In response to the decline in non-market work, children’s time spent on school work does not increase significantly.

Authors
Aysun Hızıroğlu Aygün
Associate Professor, Department of Economics, Istanbul Technical...