Abstract
Exploiting random assignment of a conditional cash transfers (CCT) program in rural Nicaragua, we study how parents use additional resources to invest in their child development. We show that resources under the control of mothers with stronger bargaining power do not have a more beneficial impact. The estimated treatment effects are mainly driven by an overall change in knowledge of parents toward child rearing practices. In light of the theoretical model that guides the empirical analysis, we can conclude that there is no evidence that mothers have a larger marginal willingness to pay than fathers for children.
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