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Do School Subsidies Promote Human Capital Investment among the Poor?

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  • César Martinelli
  • Susan W. Parker

Abstract

We investigate the hypothesis that conditioning transfers to poor families on school attendance leads to a reallocation of household resources which enhances the human capital of the next generation, via the effect of the conditionality on the shadow price of human capital and (possibly) via the effect of the transfers on household bargaining. We introduce a model to study the effects of conditional transfers on intra‐household allocations, and provide suggestive evidence of the importance of price effects using data from a conditional transfer program in Mexico.

Suggested Citation

  • César Martinelli & Susan W. Parker, 2008. "Do School Subsidies Promote Human Capital Investment among the Poor?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(2), pages 261-276, June.
    • Handle: RePEc:bla:scandj:v:110:y:2008:i:2:p:261-276
    DOI: 10.1111/j.1467-9442.2008.00537.x
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    1. Fairuzah Pertiwi Kartasasmita & Eny Sulistyaningrum, 2021. "The Impact of School Operational Assistance Program Implementation at School Level on Senior Secondary Education Enrollment by Households: Evidence from Indonesia in 2007 and 2014," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 67, pages 163-182, Desember.
    2. Sumarto, Sudarno & de Silva, Indunil, 2013. "Education Transfers, expenditures and child labour supply in Indonesia: An evaluationof impacts and flypaper effects," MPRA Paper 57132, University Library of Munich, Germany.
    3. Jaime Andres Sarmiento Espinel & Edwin van Gameren, 2016. "A collective household labor supply model with children and non-participation: Theory and empirical application," Serie documentos de trabajo del Centro de Estudios Económicos 2016-11, El Colegio de México, Centro de Estudios Económicos.
    4. Cesar Martinelli & Susan W. Parker, 2003. "Do School Subsidies Promote Human Capital Accumulation among the Poor?," Working Papers 0306, Centro de Investigacion Economica, ITAM.
    5. Jere R. Behrman & Susan W. Parker & Petra E. Todd, 2009. "Schooling Impacts of Conditional Cash Transfers on Young Children: Evidence from Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 57(3), pages 439-477, April.
    6. Marshall Makate, 2016. "Education Policy and Under-Five Survival in Uganda: Evidence from the Demographic and Health Surveys," Social Sciences, MDPI, vol. 5(4), pages 1-17, October.
    7. Jaime Andrés Sarmiento Espinel, 2012. "Parental investment in their children’s education," Serie documentos de trabajo del Centro de Estudios Económicos 2012-09, El Colegio de México, Centro de Estudios Económicos.

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