Conditional Cash Transfer Programs and Inequality of Opportunity. A case study: Juntos in Peru

Abstract: Inequality of Opportunity has recently emerged in the development agenda. The unequal access to opportunities can reinforce poverty and inequality traps. Conditional Cash Transfer (CCT) programs have consolidated as an important policy tool to fight against poverty. In addition, they have a great potential to equalize opportunities. The relationship between CCT programs and inequality of opportunity is examined in this thesis, introducing an innovative methodology for assessing inequality based on the Non-satisfied Basic Needs (NBI) approach. The NBI is the most extended direct method to estimate non-monetary poverty in Latin America. A quantitative analysis is performed in the context of the CCT program Juntos in Peru. The results suggest that Juntos had a positive impact on the reduction of inequality of opportunity (in the long run), measured by the new NBI Inequality of Opportunity Index introduced in this research.