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Effects on School Enrollment and Performance of a Conditional Cash Transfers Program in Mexico

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  • de Janvry, Alain
  • Dubois, Pierre
  • Sadoulet, Elisabeth

Abstract

We study the effects of a conditional cash transfers program on school enrollment and performance in Mexico. We provide a theoretical framework for analyzing the dynamic educational process including the endogeneity and uncertainty of performance at school (passing grades) and the effect of a cash transfer program conditional on school attendance. This framework is developed to study the Mexican social program Progresa (called now Oportunidades) in which a randomized experiment has been implemented and allows us to identify the effect of the program on enrollment and performance at school. Using the rules of the conditional program, we can explain the different incentive effects provided. We also derive the formal identifying assumptions needed to estimate consistently the average treatment effects on enrollment and performance at school. We find empirically that this program had always a positive impact on school continuation whereas for performance it had a positive impact at primary school but a negative one at secondary school (a possible consequence of disincentives due to the program termination after the third year of secondary school).

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6069.

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Date of creation: Jan 2007
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Handle: RePEc:cpr:ceprdp:6069

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Related research

Keywords: dynamic decisions; education demand; Mexico; randomized experiment; school performance; schooling decisions; transfer program; treatment effects;

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Cited by:
  1. Elena Del Rey & Fernanda Estevan, 2011. "Conditional Cash Transfers and Education Quality in the Presence of Credit Constraints," Working Papers 1108E, University of Ottawa, Department of Economics.
  2. Heinrich, Carolyn J., 2007. "Demand and Supply-Side Determinants of Conditional Cash Transfer Program Effectiveness," World Development, Elsevier, vol. 35(1), pages 121-143, January.

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