How Much Are We Willing To Pay to Send Poor Adolescents to School? Simulating Changes to Mexico`s Oportunidades in Urban Areas
AbstractAlthough Mexico’s Conditional Cash Transfer Program Oportunidades has increased overall school enrollment, many adolescents do not attend school, especially in urban areas. This paper simulates the effects of changes in program design using a simple parametric method based on a simultaneous probability model of school attendance and child labor. The paper also provides alternative non parametric simulation results by extending Todd and Wolpin’s (2006) method to incorporate changes in working hours when attending school. The results indicate that eliminating or reducing school subsidies for primary education and increasing transfer for older students is a cost-effective way to raise overall school enrollment in urban areas. Increasing school attendance of 16-year-olds to 80 percent or more, however, would require a quadrupling of scholarships. This suggests that complementary interventions are needed.
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Bibliographic InfoPaper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4631.
Date of creation: Jun 2009
Date of revision:
School attendance and work; Conditional cash transfers; Simulation; Oportunidades;
Find related papers by JEL classification:
- I20 - Health, Education, and Welfare - - Education - - - General
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-11 (All new papers)
- NEP-CMP-2009-07-11 (Computational Economics)
- NEP-EDU-2009-07-11 (Education)
- NEP-LAB-2009-07-11 (Labour Economics)
- NEP-URE-2009-07-11 (Urban & Real Estate Economics)
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