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Do School Subsidies Promote Human Capital Accumulation 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 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.

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Bibliographic Info

Paper provided by UCLA Department of Economics in its series Levine's Bibliography with number 321307000000000978.

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Date of creation: 05 Apr 2007
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Handle: RePEc:cla:levrem:321307000000000978

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  1. Orazio Attanasio & Valérie Lechene, 2002. "Tests of Income Pooling in Household Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 720-748, October.
  2. Pollak, Robert A & Wachter, Michael L, 1975. "The Relevance of the Household Production Function and Its Implications for the Allocation of Time," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 255-77, April.
  3. Ted Bergstrom, 1994. "A Survey of Theories of the Family," Labor and Demography 9401001, EconWPA, revised 10 Oct 1994.
  4. Behrman, Jere R. & Deolalikar, Anil B., 1988. "Health and nutrition," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 14, pages 631-711 Elsevier.
  5. Sadoulet, Elisabeth & de Janvry, Alain, 2003. "Targeting and calibrating educational grants for greater efficiency," CUDARE Working Paper Series 985, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  6. Hoddinott, John & Skoufias, Emmanual, 2003. "The impact of Progresa on food consumption," FCND discussion papers 150, International Food Policy Research Institute (IFPRI).
  7. Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
  8. Apps, P.F. & Rees, R., 1996. "Collective Labor Supply and Household Production," Papers 301, Australian National University - Department of Economics.
  9. Richard Blundell & Pierre-Andr� Chiappori & Costas Meghir, 2005. "Collective Labor Supply with Children," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1277-1306, December.
  10. T. Paul Schultz, 1990. "Testing the Neoclassical Model of Family Labor Supply and Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 599-634.
  11. Jere R. Behrman & Andrew D. Foster & Mark R. Rosenzweig & Prem Vashishtha, 1999. "Women's Schooling, Home Teaching, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 682-714, August.
  12. T. Paul Schultz, 2001. "School Subsidies for the Poor: Evaluating the Mexican Progresa Poverty Program," Working Papers 834, Economic Growth Center, Yale University.
  13. Emmanuel Skoufias & Susan Wendy Parker, 2001. "Conditional Cash Transfers and Their Impact on Child Work and Schooling: Evidence from the PROGRESA Program in Mexico," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  14. Esther Duflo, 2000. "Grandmothers and Granddaughters: Old Age Pension and Intra-household Allocation in South Africa," NBER Working Papers 8061, National Bureau of Economic Research, Inc.
  15. Marta Ruiz-Arranz & Benjamin Davis & Marco Stampini & Paul Winters & Sudhanshu Handa, 2002. "More Calories or More Diversity? An econometric evaluation of the impact of the PROGRESA and PROCAMPO transfer programmes on food security in rural Mexico," Working Papers 02-09, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  16. 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, 06.
  17. Benjamin Davis & Sudhanshu Handa & Marta Ruiz-Arranz & Marco Stampini & Paul Winters, 2002. "Conditionality and the Impact of Programme Design on Household welfare: Comparing two diverse cash transfer programmes in rural Mexico," Working Papers 02-10, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  18. Becker, Gary S, 1993. "Nobel Lecture: The Economic Way of Looking at Behavior," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 385-409, June.
  19. Behrman, Jere R & Sengupta, Piyali & Todd, Petra, 2005. "Progressing through PROGRESA: An Impact Assessment of a School Subsidy Experiment in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 237-75, October.
  20. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June.
  21. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
  22. Parker, Susan W. & Rubalcava, Luis & Teruel, Graciela, 2008. "Evaluating Conditional Schooling and Health Programs," Handbook of Development Economics, Elsevier.
  23. Lundberg, S.J. & Pollak, R.A. & Wales, T.J., 1994. "Do Husbands and Wives Pool Their Resources? Evidence from U.K. Child Benefit," Discussion Papers in Economics at the University of Washington 94-6, Department of Economics at the University of Washington.
  24. Chiappori, Pierre-Andre, 1997. "Introducing Household Production in Collective Models of Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 191-209, February.
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