Conditional cash transfers, female bargaining power and parental labour supply

Recent empirical evidence shows that conditional cash transfer (CCT) programmes do not have an aggregate effect on the adult labour supply. However, little attention has been paid to the role of other intrahousehold dynamics. This paper examines how the parental labour supply response to CCT programmes varies with the bargaining power structure of households. We analyse a randomized experimental CCT design from rural areas of Honduras (PRAF) and found that women with more bargaining power in the household are four percentage points less likely to be employed than other women.