How to save lives during the first 1,000 days of life? Impact analysis of cash transfers on stunting

This study examines the impact of Ecuador’s “Bono 1,000 días” (1,000 Days Bond), an unconditional cash transfer program that includes a conditional component, aimed at reducing childhood stunting. 

Implemented in 2022, this program targets pregnant women and children up to two years old living in poverty, providing them with financial assistance to improve early childhood nutrition and health outcomes. Using administrative data from July 2022 to June 2024 and applying a fuzzy discontinuity design, we analyse the program's effectiveness by estimating changes in height-for-age Z-scores among beneficiaries. 

Our findings suggest a statistically significant increase of approximately a quarter of a standard deviation in height-for-age Z-scores for children identified as poor. These results underscore the critical importance of investing during the first 1,000 days of life to prevent stunting and improve children’s long-term health and developmental prospects. The insights gained from this research provide valuable implications for the design of effective cash transfer programs in other countries.