novel results. From a theoretical point of view, for any given transfer size, there is a critical level of household income … cash transfer, in Lesotho. We show that the poorest households do not increase investment in children's human capital … cash transfers might not be always effective to support the investment in children's human capital of the poorest …

Cash transfers are a popular and successful means of tackling household vulnerability and promoting human capital … investment. They can also reduce child labor, especially when it is a response to household vulnerability. But if not properly … designed, cash transfers that promote children's education can increase their economic activities in order to pay the …