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When being out of school can be bad for the school: a case for conditional cash transfers

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  • Fernanda Estevan

    ()
    (Department of Economics, University of Ottawa, Ottawa, ON)

Abstract

We develop a theoretical model to analyze how the lack of full enrollment affects the quality of public education chosen by majority voting. In our model, the households choose whether to enrol their child at school or not. Poor households do not send their children to school because there is an opportunity cost related to education. We show that if preferences for public education quality are decreasing in income, an ends against the middle equilibrium may arise with low levels of expenditures. In this setting, the introduction of a conditional cash transfer program may increase the educational budget chosen by majority voting. Indeed, by raising school enrollment, it increases the political support for educational expenditures.

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File URL: http://www.socialsciences.uottawa.ca/sites/default/files/public/eco/eng/documents/0915E.pdf
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Bibliographic Info

Paper provided by University of Ottawa, Department of Economics in its series Working Papers with number 0915E.

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Length: 28 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:ott:wpaper:0915e

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Keywords: school enrollment; conditional cash transfers; political economy;

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  1. David, DE LA CROIX & Matthias, DOEPKE, 2003. "To Segregate or to Integrate : Education Politics and Democracy," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2003021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  2. de Janvry, Alain & Finan, Frederico & Sadoulet, Elisabeth & Vakis, Renos, 2006. "Can conditional cash transfer programs serve as safety nets in keeping children at school and from working when exposed to shocks?," Journal of Development Economics, Elsevier, vol. 79(2), pages 349-373, April.
  3. Cohen-Zada, Danny & Justman, Moshe, 2003. "The political economy of school choice: linking theory and evidence," Journal of Urban Economics, Elsevier, vol. 54(2), pages 277-308, September.
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