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AbstractThis paper presents an analysis of the recent evolution of social assistance in the developing world, looking at its complex typological configuration, which has interlinked with, and partly reflects the complex demographic and epidemiological transitions and rapid urbanization and economic convergence that many developing countries have exhibited over the past decades. The paper underscores the principles of the poverty focus of social assistance and presents an overview of existence evidence of first‐ and second‐order effects of social assistance, particularly in the domains of poverty, education, health, and labor markets. Moreover, the paper highlights the knowledge gaps with regard to the longer term and gender‐specific welfare effects of social assistance, and the redistributive effects, and the incentives and distortion mechanisms that transfer programs can generate in the labor and insurance markets.

In 2006, the Bolivian government introduced a large-scale cash transfer programme, Bono Juancito Pinto (BJP). Exploiting the exogenous variation of the programme expansion, this paper examines the impact of BJP on schooling and child labour. The analysis suggests that the transfer increases the likelihood of school enrolment but has no sizeable effect on the incidence of child labour. The results are in line with theoretical models that predict that if leisure and schooling decisions are substitutes, a school incentive will have either positive or neutral effects on child labour. Our findings support previous evidence that schooling and work decisions are not perfect substitutes among children.

Over the past two decades, there has been unprecedented attention to the promotion of human development via government spending in the social sectors as a conditio sine qua non for economic growth and improved aggregate welfare. Yet the existing evidence on the subject remains limited and contested. This paper contributes to the literature by examining the causal effect of government spending on the social sectors (health, education and social protection) on three measures of aggregate welfare: the Human Development Index, the Inequality-adjusted Human Development Index and child mortality rates, using longitudinal data from 55 low-income and middle-income countries from 1990 to 2009. We find strong evidence to support the proposition that government social spending has played a significant role in improving aggregate welfare in the developing world. Our results are fairly robust to, inter alia, the method of estimation, the set of control variables and the use of alternative samples and instruments.

AbstractOver the past two decades, there has been unprecedented attention to the promotion of human development via government spending in the social sectors as a conditio sine qua non for economic growth and improved aggregate welfare. Yet the existing evidence on the subject remains limited and contested. This paper contributes to the literature by examining the causal effect of government spending on the social sectors (health, education and social protection) on three measures of aggregate welfare: the Human Development Index, the Inequality‐adjusted Human Development Index and child mortality rates, using longitudinal data from 55 low‐income and middle‐income countries from 1990 to 2009. We find strong evidence to support the proposition that government social spending has played a significant role in improving aggregate welfare in the developing world. Our results are fairly robust to, inter alia, the method of estimation, the set of control variables and the use of alternative samples and instruments. © 2017 UNU‐WIDER. Journal of International Development published by John Wiley & Sons, Ltd.