Essays on evaluation of a conditional cash transfer program: Evidence from rural Mexico

In the chapters herein, I explore two issues related to the evaluation of a conditional cash transfer (CCT) program. The first examines the impact of droughts on food consumption and the mitigating effects of a CCT program. The second looks at the impact of a CCT program on adults' health.; The first chapter exploits the panel data of a randomized experiment from the Mexican PROGRESA program (renamed OPORTUNIDADES) to evaluate the impact of droughts on food consumption in rural Mexico and the mitigating effects of the CCT program on such impacts. Self-reported drought reduces the caloric availability from vegetables and fruits, from animal products, and from other sources, but increases calories from grains. PROGRESA can completely mitigate the effects of droughts on calories from vegetables and fruits, animal products and other sources, but not on calories from grains. The analysis further shows that the increased consumption from grains is mainly from purchased sources rather than home-production. The Engel curve analysis provides evidence that grains are inferior goods in rural Mexico. PROGRESA should strengthen the educational components on the importance of balanced diets and nutritional intake.; The second chapter presents evidence of the impact of the Mexican CCT program on adults' health, with respect to the amount of transfers and the length of enrollment in the program. The analysis shows that amount of transfers increases the body mass index (BMI) and the prevalence of overweight, obesity and uncontrolled hypertension. However, length of enrollment decreases BMI and the prevalence of uncontrolled hypertension. Our analysis also shows that the amount of transfers increases the total caloric availability, mainly from vegetables, fruits and animal products. Length of enrollment increases caloric availability from vegetables and fruits, and decreases caloric availability from sugar and oil. Length of enrollment also increases the rate of preventive check-ups and physical abilities. The results imply that conditionalities of the OPORTUNIDADES program, such as the nutrition, health and hygiene seminars and more frequent visits to health clinics play an important role in shaping adults' behaviors.