Abstract
This paper uses panel data for Mexico for 1997 to 1999 in order to test several theoretical findings regarding the impact of a conditional cash transfer programs on child labor, emphasizing the differential impact on indigenous households. Using data from the conditional cash transfer program, PROGRESA, in Mexico. The authors investigate the interaction between child labor and the indigenous status of the household and find that indigenous children showed a greater probability of working in 1997 and this probability is reversed after treatment in the program in 1999. Indigenous children also had a lower school attainment compared to children that either only speak Spanish or are bilingual. After the program, school attainment among indigenous children increased, reducing the difference.
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