The butterfly effect: A propensity score matching analysis of social transfers and their impact on child development.

Abstract

An increasing body of multidisciplinary research has emerged, focusing on the examination of the impact of social transfers on poverty reduction, economic growth, and child development. This study focuses primarily on the crucial function that social transfers have in promoting infant development. The objective of this research is to examine the impact of the butterfly effect on the association between household access to social transfers and the developmental outcomes of children aged five and below. The analysis is based on data collected from the 2018 Multiple Indicators Cluster Survey carried out in the Punjab region of Pakistan. Through the utilization of a matching estimator technique, we conducted an analysis to investigate the outcomes experienced by children residing in similar households, while receiving varying levels of social transfer. Based on the research findings, it can be concluded that children residing in families having access to social transfers exhibit a higher likelihood of development compared to children residing in similar households lacking access to social transfers. This suggests the involvement of mechanisms outside the commonly stressed direct cash transfers. This study enhances our comprehension of the impact of early childhood treatments on the cognitive, social, and emotional development of children aged five and below. Moreover, it highlights the prospects for future research in the field of child development by focusing on interventions conducted prior to adolescence. By acknowledging and catering to the distinct requirements of marginalized children, it ultimately results in a more fair and comprehensive advancement of society.