Abstract

This thesis explores how social transfers promote a sustainable path out of poverty while fostering economic performance. It is showed that non-contributory social protection investments foster economic performance. The findings include non-negative effects of social transfers on household heads’ labour supply in Ecuador. Investments in human capital are seen to promote higher levels of schooling. Regarding mid-term effects a positive treatment effect for social transfers on intragenerational social mobility is found. Finally, the results indicate a positive rate of return of social protection investments in Cambodia. In conclusion, social protection programmes must be seen as an investment rather than as a cost.

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