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School subsidies for the poor

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Author Info

  • Schultz, T. Paul

Abstract

This paper assesses how the Programa Nacional de Educacion, Salud, y Alimentacion (PROGRESA) program has affected the school enrollment of Mexican youth in the first 15 months of its operation. PROGRESA provides poor mothers in poor rural communities with education grants, if their children attend school regularly. Enrollment rates are compared between groups of poor children who reside in communities randomly selected to participate in the initial phase of the PROGRESA program and those who reside in other comparably poor (control) communities. Pre-program comparisons document how well the randomized design is implemented, and double-differenced estimators are reported over time within this panel of children. Probit models are then estimated for the probability that an individual child is enrolled, which statistically controls for additional characteristics of the child, their parents, local schools, and community, and for samples of different compositions, to evaluate the sensitivity of the estimated program effects to these variations. If the current relationship of the program outlays to enrollments, and that of schooling to increased adult earnings, both persist in the future, the internal rate of return to the PROGRESA educational grants as an investment is estimated to be about 8 percent, which accrues in addition to the program's efficacy as a poverty reduction program.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND briefs with number 102.

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Date of creation: 2001
Date of revision:
Handle: RePEc:fpr:fcndbr:102

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Related research

Keywords: Subsidies Mexico. ; Poverty alleviation Mexico. ; Children. ;

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References

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  1. Datt, Gaurav & Jolliffe, Dean, 1999. "Determinants of Poverty in Egypt," FCND briefs 2, International Food Policy Research Institute (IFPRI).
  2. Datt, Gaurav & Jolliffe, Dean, 1999. "Determinants of poverty in Egypt, 1997," FCND discussion papers 75, International Food Policy Research Institute (IFPRI).
  3. Tansel, Aysit, 1997. "Schooling Attainment, Parental Education, and Gender in Cote d'Ivoire and Ghana," Economic Development and Cultural Change, University of Chicago Press, vol. 45(4), pages 825-56, July.
  4. Mark R. Rosenzweig, 1999. "Welfare, Marital Prospects, and Nonmarital Childbearing," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S3-S32, December.
  5. Fafchamps, Marcel & Quisumbing, Agnes R., 1999. "Social roles, human capital, and the intrahousehold division of labor," FCND discussion papers 73, International Food Policy Research Institute (IFPRI).
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Citations

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Cited by:
  1. Caldés, Natàlia & Coady, David P. & Maluccio, John A., 2004. "The cost of poverty alleviation transfer programs," FCND briefs 174, International Food Policy Research Institute (IFPRI).
  2. Sebastian Galiani & Samuel Berlinski, 2005. "The Effect of a Large Expansion of Pre-Primary School Facilities on Preschool Attendance and Maternal Employment," Working Papers 77, Universidad de San Andres, Departamento de Economia, revised Aug 2005.
  3. Christopher Udry, 2003. "Child Labor," Working Papers 856, Economic Growth Center, Yale University.
  4. Cynthia B. Lloyd, 2001. "World population in 2050: assessing the projections: discussion," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 46.
  5. Angelucci, Manuela, 2004. "Aid and Migration: An Analysis of the Impact of Progresa on the Timing and Size of Labour Migration," IZA Discussion Papers 1187, Institute for the Study of Labor (IZA).
  6. Skoufias, Emmanuel & McClafferty, Bonnie, 2001. "Is PROGRESA working?," FCND discussion papers 118, International Food Policy Research Institute (IFPRI).
  7. Petra Todd & Kenneth I. Wolpin, 2002. "Using a Social Experiment to Validate a Dynamic Behavioral Model of Child Schooling and Fertility: Assessing the Impact of a School Subsidy Program in Mexico," PIER Working Paper Archive 03-022, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Sep 2003.
  8. Orazem, Peter & Gunnarsson, Victoria, 2004. "Child Labour, School Attendance and Performance: A Review," Staff General Research Papers 11177, Iowa State University, Department of Economics.
  9. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers 172, International Food Policy Research Institute (IFPRI).
  10. Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2001. "Child Labor: Theory, Evidence, and Policy," Working Papers 474, Research Seminar in International Economics, University of Michigan.
  11. Amanda Glassman & Jessica Todd, 2007. "Performance-Based Incentives for Health: Conditional Cash Transfer Programs in Latin America and the Caribbean," Working Papers 120, Center for Global Development.
  12. Gustav Ranis, 2004. "The Evolution of Development Thinking: Theory and Policy," Working Papers 886, Economic Growth Center, Yale University.
  13. Coady, David P. & Parker, Susan W., 2002. "A cost-effectiveness analysis of demand- and supply-side education interventions," FCND briefs 127, International Food Policy Research Institute (IFPRI).
  14. Susan W. Parker & Luis Rubalcava & Graciela Teruel, 2002. "Schooling Inequality among the Indigenous: A Problem of Resources or Language Barriers?," Research Department Publications 3134, Inter-American Development Bank, Research Department.
  15. Rawlings, Laura B. & Rubio, Gloria M., 2003. "Evaluating the impact of conditional cash transfer programs : lessons from Latin America," Policy Research Working Paper Series 3119, The World Bank.

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