The Impact of Conditional Cash Transfer on Savings and Other Associated Variables: Evidence from the Philippines’ 4Ps Program


  • Tristan Canare Department of Economics, Ateneo de Manila University, Quezon, Philippines


Conditional Cash Transfer, Savings, Propensity Score Matching


The Philippines is one of the first Asian countries to implement a conditional cash transfer program (CCT). This study aims to find out if the Philippines CCT has an impact on the saving behavior of beneficiaries. Applying the Propensity Score Matching (PSM) methodology to the 2011 Annual Poverty Indicators Survey, results show evidence that CCT has no statistically significant effect on actual savings but has moderate positive impact on savings rate. CCT also has moderate positive impact on the probability of paying off outstanding loans, on the probability of granting loans to others, and on the probability of maintaining a bank deposit.


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