Cash transfer programmes, income inequality and regional disparities. The case of the Uruguayan Asignaciones Familiares

Abstract

This article aims at contributing to the debate on the effectiveness of cash transfers in terms of income inequality variations at the national and regional level, in middle-income countries like Uruguay. We microsimulate how targeting criteria affect impacts on school attendance, income inequality and poverty of the recently incepted cash transfer programme Asignaciones Familiares. Our results show that inequality tends to persist although programme effects on child education, indigence and poverty are positive. Targeting mechanisms strongly condition both the geographical distribution of beneficiaries and school attendance outcomes but do not affect regional disparities and programme effects on inequality.