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Does labelling work as well as strict conditionality in cash transfers?

Sambit Rath | May 2015

IDF is engaged in an experimental programme in Odisha incentivising school attendance through a cash transfer.
In the first year, students were told that the stipend is contingent on 70 per cent monthly attendance. But, it was not imposed.
This creates the setting for testing whether “labelling” a cash transfer as conditional is as effective as strict conditionality.
Initial results show that labelling caused improvement in attendance.
Perhaps effective alternatives to expensive conditionality compliance monitoring systems should exist.