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Do School Subsidies Promote Human Capital Accumulation among the Poor?

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Listed:
  • Cesar Martinelli

    (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))

  • Susan W. Parker

    (Division de Economia, Centro de Investigacion y Docencia Economica (CIDE))

Abstract

We investigate the hypothesis that conditioning transfers to poor families on school attendance leads to a reallocation of household resources enhancing the human capital of the next generation, via the effect of the conditionality on the shadow price of human capital. We estimate the price effect of conditional transfers to mothers on intrahousehold allocations using data from a social program in Mexico, and show that price effects are large and statistically significant. The estimates suggest that household resources beyond those directly subject to conditionality have been reallocated favorably to children's human capital.

Suggested Citation

  • Cesar Martinelli & Susan W. Parker, 2003. "Do School Subsidies Promote Human Capital Accumulation among the Poor?," Working Papers 0306, Centro de Investigacion Economica, ITAM.
    • Handle: RePEc:cie:wpaper:0306
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    References listed on IDEAS

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    Cited by:

    1. Armando Barrientos & Rachel Sabates-Wheeler, 2011. "Strategic complementarities and social transfers: how do PROGRESA payments impact nonbeneficiaries?," Applied Economics, Taylor & Francis Journals, vol. 43(23), pages 3175-3185.
    2. 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.
    3. 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.

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