The uneven effects of conditional cash transfers on women and men

Abstract

We compare the effects of training-conditional and unconditional cash transfer programs on the labor market outcomes of women and men. We use the experiment in Del Boca et al. (2021) where low-income households are randomly assigned to one of three groups: cash transfer conditional on a family-specific bundle of training programs, unconditional cash transfer with no access to those training programs, and no treatment. We exploit Social Security data, including all registered labor contracts in Italy. We find that cash transfers conditional on training have a positive and sizeable effect on males’ labor income and that this effect stays in place for at least two years after the program. Unconditional cash transfers did not affect men. In contrast, female employment is positively affected by both cash transfers regardless of access to the training, but the effect is smaller if they are conditional.