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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).

Suggested Citation

  • De Janvry, Alain & Dubois, Pierre & Sadoulet, Elisabeth, 2007. "Effects on School Enrollment and Performance of a Conditional Cash Transfers Program in Mexico," CEPR Discussion Papers 6069, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:6069
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    2. Sarah Baird & Francisco H. G. Ferreira & Berk Özler & Michael Woolcock, 2013. "Relative Effectiveness of Conditional and Unconditional Cash Transfers for Schooling Outcomes in Developing Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 9(1), pages 1-124.
    3. 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.
    4. Ciro Avitabiley & Matteo Bobba and Marco Pariguanax, 2017. "High School Track Choice and Liquidity Constraints: Evidence from Urban Mexico," Working Paper 0195be34-77f6-4879-a68d-e, Agence française de développement.
    5. Fatoke Dato, Mafaizath A., 2015. "Impact of income shock on children’s schooling and labor in a West African country," MPRA Paper 64317, University Library of Munich, Germany.
    6. Campus, Brooke & Fafard, Patrick & St. Pierre, Jessica & Hoffman, Steven J., 2021. "Comparing the regulation and incentivization of e-cigarettes across 97 countries," Social Science & Medicine, Elsevier, vol. 291(C).
    7. Felipe Barrera-Osorio & Leigh L. Linden & Juan E. Saavedra, 2019. "Medium- and Long-Term Educational Consequences of Alternative Conditional Cash Transfer Designs: Experimental Evidence from Colombia," American Economic Journal: Applied Economics, American Economic Association, vol. 11(3), pages 54-91, July.
    8. Del Rey, Elena & Estevan, Fernanda, 2013. "Conditional cash transfers and education quality in the presence of credit constraints," Economics of Education Review, Elsevier, vol. 34(C), pages 76-84.
    9. Tomoki Fujii & Christine Ho & Rohan Ray & Abu S. Shonchoy, 2021. "Conditional Cash Transfer, Loss Framing, and SMS Nudges: Evidence from a Randomized Field Experiment in Bangladesh," Working Papers 2109, Florida International University, Department of Economics.
    10. Marisa Bucheli, 2014. "Public Transfers and Poverty Reduction: an Evaluation of Program Contribution to the Exit Rate from Poverty of Children and the Elderly," Documentos de Trabajo (working papers) 0914, Department of Economics - dECON.
    11. Avitabile, Ciro & Bobba, Matteo & Pariguana, Marco, 2017. "High School Track Choice and Liquidity Constraints: Evidence from Urban Mexico," IZA Discussion Papers 10506, Institute of Labor Economics (IZA).
    12. 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.
    13. Huifu Nong & Qing Zhang & Hongjia Zhu & Rong Zhu, 2022. "Targeted Poverty Alleviation and Children’s Academic Performance in China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(4), pages 951-969, December.
    14. De Groote, Olivier, 2019. "Dynamic Effort Choice in High School: Costs and Benefits of an Academic Track," TSE Working Papers 19-1002, Toulouse School of Economics (TSE), revised Jun 2023.
    15. Hidayatina, Achsanah & Garces-Ozanne, Arlene, 2019. "Can cash transfers mitigate child labour? Evidence from Indonesia’s cash transfer programme for poor students in Java," World Development Perspectives, Elsevier, vol. 15(C), pages 1-1.
    16. Pierre Dubois & Alain de Janvry & Elisabeth Sadoulet, 2012. "Effects on School Enrollment and Performance of a Conditional Cash Transfer Program in Mexico," Journal of Labor Economics, University of Chicago Press, vol. 30(3), pages 555-589.
    17. Khusaini Khusaini & Heni Cahya Ramdani & Estu Niana Syamiya & Iis Aisyah, 2022. "Does the government expenditure on education and family income boost educational expansion?: Lesson from panel FMOLS," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 24(2), pages 89-105, December.
    18. Marisa Bucheli, 2015. "Public Transfers and Poverty Reduction: An Evaluation of Program Contribution to the Exit Rate from Poverty to Children and the Elderly," Commitment to Equity (CEQ) Working Paper Series 1327, Tulane University, Department of Economics.
    19. Stephen Smith, 2018. "Development Economics Meets the Challenges of Lagging U.S. Areas: Applications to Education, Health and Nutrition, Behavior, and Infrastructure," Working Papers 2018-7, The George Washington University, Institute for International Economic Policy.
    20. Martin Wiegand, 2019. "Do early-ending conditional cash transfer programs crowd out school enrollment?," Tinbergen Institute Discussion Papers 19-053/V, Tinbergen Institute.
    21. Marisa Bucheli, 2016. "Public Transfers and the Poverty of Children and the Elderly in Uruguay," Poverty & Public Policy, John Wiley & Sons, vol. 8(4), pages 398-415, December.

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    More about this item

    Keywords

    Dynamic decisions; Education demand; Mexico; Randomized experiment; School performance; Schooling decisions; Transfer program; Treatment effects;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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