Abstract:-
Human capital formation among adolescent girls is frequently constrained by socioeconomic norms that favor early marriage, household labor, and reduced schooling. We study the impacts of a large-scale conditional cash transfer (CCT) program in India — the Kanyashree Prakalpa — that incentivizes girls’ education and delays school dropout through financial incentives. Using time-use data from a national survey and exploiting cross-state policy variations, we estimate the program’s intent-to-treat effects on educational time investments at home and at school. Our estimates indicate that the program raised girls’ time devoted to educational activities at home and to homework by about 3.5 percent and 9 percent, respectively, relative to the sample mean. This was accompanied by a substantial reduction in time spent on domestic work. By contrast, we detect no statistically significant changes in school attendance or time spent in school at either the extensive or intensive margin. We also find long-term effects: women exposed to the program exhibit higher educational attainment and greater investment in educational activities in early adulthood, sometimes well after program eligibility has expired. These findings contribute to the growing evidence on the role of CCTs in reshaping intra-household time allocation and generating persistent gains in human capital formation for women.

(jointly with Prabhal K. De)