The Impact of Positive and Negative Income Changes on the Height and Weight of Young Children
by Thomas Buser, Hessel Oosterbeek, Erik Plug, Juan Ponce, Josť Rosero
(April 2014)
forthcoming in: World Bank Economic Review
[revised version]

We estimate the impact of changes in unearned income on the height and weight of young children in a developing country. As source of variation we use changes in the eligibility criteria for receipt of an unconditional cash transfer in Ecuador. Two years after families lost the transfer, which they had received for seven years, their young children weigh less, and are shorter and more likely to be stunted than young children in families that kept the cash transfer. We find no effect on young children's height and weight two years after gaining the cash transfer. Information on household expenditures suggests that a reduction of food expenditures by households that lost the transfer is the main mechanism behind this finding.
Text: See Discussion Paper No. 8130