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Economics

Conditional Cash Transfers, Incentives, and Poverty Traps

Quick fact

Mexico's Progresa (later Oportunidades) program reduced child labor and increased school enrollment by about 20% in rural areas, showing that conditions can change behavior.

Why this is interesting

What if a simple cash handout could break the cycle of poverty? Conditional cash transfers add a twist: the handout comes with strings attached, and that's exactly why they can work.