The impact of cash transfers on child outcomes in rural Thailand: Evidence from a social pension reform

Abstract

Previous studies have identified a causal relationship between pension eligibility for the elderly and an improvement in education-related outcomes of co-residing children. In contrast to the often generous schemes considered before, this study investigates the effects of a non-contributory pension scheme in Thailand that grants much smaller benefits. Our empirical analysis exploits a reform which expanded the scheme from a targeted program to universal coverage. Using a generalized difference-in-difference model, we provide evidence that gaining eligibility for the scheme can affect work status and literacy of children living with eligible pensioners, while not actually raising total net household income. The effect sizes we find for older children in our sample are within the range of those estimated from more generous schemes. Younger children do not benefit from the reform.