Conditional cash transfer programs (CCTs) have two main objectives: reducing poverty and increasing the human capital of children. To reach these objectives, transfers are given to poor households conditioned on investments in their children's education, health, and nutrition. Targeting mechanisms used by CCTs have been generally successful in…

Effective poverty reduction programs require careful measurement of poverty status. Commonly used consumption or income-based classifications of poverty aggregate together households that are persistently poor with those who are only in poverty due to passing conditions. They also classify as non-poor households that are at risk of falling into…