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Cost-effectiveness Analysis of Demand- and Supply-side Education Interventions: the Case of PROGRESA in Mexico

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  • David P. Coady
  • Susan W. Parker

Abstract

The paper is concerned with the issue of the most cost-effective way of improving access to education for poor households in developing countries. The authors consider two alternatives: extensive expansion of the school system (i.e., bringing education to the poor), and subsidizing investment in education by the poor (i.e., bringing the poor to the education system). To this end, the authors evaluate PROGRESA, a large poverty-alleviation program recently introduced in Mexico, which subsidizes education. Using double-difference regression estimators on data collected before and after the program for randomly selected "control" and "treatment" households, the relative impacts of the demand- and supply-side program components are estimated. Combining these estimates with cost information, it is found that the demand-side subsidies are substantially more cost-effective than supply-side expansions. Copyright Blackwell Publishing Ltd 2004.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 8 (2004)
Issue (Month): 3 (08)
Pages: 440-451

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Handle: RePEc:bla:rdevec:v:8:y:2004:i:3:p:440-451

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Cited by:
  1. Veronica Amarante & Mery Ferrando & Andrea Vigorito, 2011. "School Attendance, Child Labor and Cash Transfers. An Impact Evaluation of PANES," Working Papers PIERI 2011-22, PEP-PIERI.
  2. Estevan, Fernanda, 2013. "The impact of conditional cash transfers on public education expenditures: A political economy approach," European Journal of Political Economy, Elsevier, vol. 32(C), pages 268-284.
  3. Del Rey, Elena & Estevan, Fernanda, 2013. "Conditional cash transfers and education quality in the presence of credit constraints," Economics of Education Review, Elsevier, vol. 34(C), pages 76-84.
  4. John A. Maluccio & Alexis Murphy & Ferdinando Regalia, 2009. "Does Supply Matter? Initial Supply Conditions and the Effectiveness of Conditional Cash Transfers for Grade Progression in Nicaragua," Middlebury College Working Paper Series 0908, Middlebury College, Department of Economics.
  5. Lentz, Erin C. & Barrett, Christopher B., 2013. "The economics and nutritional impacts of food assistance policies and programs," Food Policy, Elsevier, vol. 42(C), pages 151-163.
  6. Lay, Jann, 2010. "MDG achievements, determinants and resource needs : what has been learnt ?," Policy Research Working Paper Series 5320, The World Bank.
  7. Ludger Wossmann, 2010. "Families, schools and primary-school learning: evidence for Argentina and Colombia in an international perspective," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 42(21), pages 2645-2665.
  8. Raymond, Melanie & Sadoulet, Elisabeth, 2003. "Educational Grants Closing the Gap in Schooling Attainment between Poor and Non-Poor," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series, Department of Agricultural & Resource Economics, UC Berkeley qt60r0x8j4, Department of Agricultural & Resource Economics, UC Berkeley.
  9. F.Rosati & M. Rossi, 2007. "Impact of school quality on child labor and school attendance: the case of CONAFE Compensatory Education Program in Mexico," UCW Working Paper 21, Understanding Children's Work (UCW Programme).
  10. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers 172, International Food Policy Research Institute (IFPRI).
  11. Ariel Fiszbein & Norbert Schady & Francisco H. G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications, The World Bank, number 2597.
  12. Marcos E. Domínguez Viera, 2011. "Does the Impact of Oportunidades Program Increases in Highly Competitive Regions?," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 79-111, November.

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