Mauricio Molina Moreno

ID: R11627048
Second draft
Audience:
Policy makers at Ministerio De Agricultura Y Desarrollo Rural (Ministry of Agriculture And
Rural Development)
Issue:
Economic impact of being a single mother in a rural area in Colombia.
Problem: Colombia is the country with the most single mothers in the world, with a rate of 84%
single mothers. In 2021, nearly 56 percent of the Colombian population who belonged to a
family whose head of household was female lived in poverty. From 2003 to 2012, Colombian
poverty rates varied more by family type, with single parents (especially families headed by a
mother) faring worse during this period. National statistics on trends in absolute poverty in
Colombia show that the number of single parents increased by more than 4 points during this
period, while the number of cohabiting and married families each decreased by 4 and 5 points,
respectively.
Both types of families are more likely to live in poverty if they live in a rural area. Single-mother
families in rural areas are even more likely to be in poverty and more likely to be dependent on
public assistance.
So what?:
This is important for policymakers because it underscores the need for policies that promote
economic stability for rural single-mother families, which can lead to poverty reduction. For
example, 80% of people living in poverty worldwide live in these regions. Developing countries
often have large rural populations, which exacerbates this problem. In 2018, about 36% of rural
families in Colombia lived in extreme poverty, compared to about 24% of urban residents. It can
lead to stronger communities, a more prosperous economy and improvement of national statistics
of poverty.
Solutions:
Some research suggests marriage as a possible solution because it reduces the number of single-
mother families most at risk of poverty, but policies should not be based on this assumption.
Instead, policies that are more feasible are needed, policies that allow single mothers to earn
enough to both support their families and build assets. To achieve these goals, it is necessary that
women receive quality education or vocational training and have access to support services in the
short and medium term.
On the other hand, public subsidies are not enough; investing in business development and
funding microenterprise programs may be appropriate long-term solutions. In the short term,
wage supplements in the form of an increased tax credit or an extended period for temporary
assistance programs for people in rural areas make sense. Extending the duration of national
programs such as "Familias en acción" or "Adulto Mayor" may be the most effective tool.
The National Planning Office (DANE) has studied the impact of these social programs using
sociodemographic data and information on monthly variations in household, family, and
individual income, employment status, and participation in government-sponsored programs.
Policy makers can make an analysis of these household-level data using logistic regression.
Logistic regression allows for the estimation of a maximum likelihood model with time-
dependent covariates. In this way, it is possible to measure the impact of expanded tax credits
and these assistance programs in a much more precise way.

Benefits:
Increasing the timing of welfare programs can have positive effects. It can give single mothers
more time to get back on their feet and become self-sufficient, which can reduce poverty rates in
rural areas. In the U.S., for example, one report found that extending the time limit on welfare
programs from two to five years could lift an additional 1.1 million people out of poverty,
including 600,000 children, leading to reduced use of public funds.
In addition, the tax credit can provide these families with additional income that can help them
meet their basic needs and reduce poverty rates. For example, a 10% increase in the tax credit
can reduce the poverty rate among single mothers by up to 4%, according to the National Bureau
of Economic Research.
Another long-term benefit of reducing poverty in single-mother households is improved health.
Families with better incomes can afford adequate and healthier food and have easier access to
health care. There are also other benefits, such as access to education and participation in society.