Effect of cash transfer program on entrepreneurship and living conditions in Loja, Ecuador

Resumen

This study analyzes the effect of the Crédito de Desarrollo Humano (CDH)
program on entrepreneurship and living conditions among the beneficiaries of the Bono de Desarrollo Humano (BDH), which is aimed at reducing the poverty rate and promoting the development of human capital. A Propensity Score Matching approach was used to estimate the causal effect of this program. The results show that CDH recipients are more likely to be self-employed through entrepreneurship and have better living conditions. However, a negative effect on housing quality was observed. These results can provide public agencies with tools to adjust their selection procedures.