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The schooling repayment hypothesis for private transfers: Evidence from the PROGRESA/Oportunidades experiment

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  • Carlos Chiapa

    ()
    (Colegio de Mexico)

  • Laura Juarez

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

Abstract

This paper provides evidence on the schooling repayment motive for the private transfers that adult children give to their parents using data from the Mexican conditional cash transfer program PROGRESA/Oportunidades, which pays a transfer to parents for sending their children to school. We exploit the exogenous variation in the schooling grants received by the parental household, induced by the age of the child in 1997 and the year of treatment. Our results suggest that (i) there exists a repayment motive and (ii) that PROGRESA/Oportunidades is causing adult children to transfer less resources to their parents.

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Bibliographic Info

Paper provided by Centro de Investigacion Economica, ITAM in its series Working Papers with number 1201.

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Length: 42 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:cie:wpaper:1201

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Related research

Keywords: Schooling repayment hypothesis; intergenerational transfers; PROGRESA/Oportunidades;

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  1. Cheolsung Park, 2003. "Are children repaying parental loans? Evidence from Malaysia using matched child-parent pairs," Journal of Population Economics, Springer, vol. 16(2), pages 243-263, 05.
  2. Jere R. Behrman & Susan W. Parker & Petra E. Todd, 2011. "Do Conditional Cash Transfers for Schooling Generate Lasting Benefits?: A Five-Year Followup of PROGRESA/Oportunidades," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 93-122.
  3. Gustavo J. Bobonis & Frederico Finan, 2009. "Neighborhood Peer Effects in Secondary School Enrollment Decisions," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 695-716, November.
  4. Raut, Lakshmi K. & Tran, Lien H., 2005. "Parental human capital investment and old-age transfers from children: Is it a loan contract or reciprocity for Indonesian families?," Journal of Development Economics, Elsevier, vol. 77(2), pages 389-414, August.
  5. Arrondel, Luc & Masson, Andre, 2006. "Altruism, exchange or indirect reciprocity: what do the data on family transfers show?," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
  6. Skoufias, Emmanuel & Parker, Susan W., 2001. "Conditional cash transfers and their impact on child work and schooling," FCND briefs 123, International Food Policy Research Institute (IFPRI).
  7. Donald Cox & Zekeriya Eser & Emmanuel Jimenez, 1996. "Motives for Private Transfers over the Life Cycle: An Analytical Framework and Evidence for Peru," Boston College Working Papers in Economics 327., Boston College Department of Economics.
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