IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v8y2004i3p440-451.html
   My bibliography  Save this article

Cost‐effectiveness Analysis of Demand‐ and Supply‐side Education Interventions: the Case of PROGRESA in Mexico

Author

Listed:
  • David P. Coady
  • Susan W. Parker

Abstract

The paper is concerned with the issue of the most cost‐effective way of improving access to education for poor households in developing countries. The authors consider two alternatives: extensive expansion of the school system (i.e., bringing education to the poor), and subsidizing investment in education by the poor (i.e., bringing the poor to the education system). To this end, the authors evaluate PROGRESA, a large poverty‐alleviation program recently introduced in Mexico, which subsidizes education. Using double‐difference regression estimators on data collected before and after the program for randomly selected “control” and “treatment” households, the relative impacts of the demand‐ and supply‐side program components are estimated. Combining these estimates with cost information, it is found that the demand‐side subsidies are substantially more cost‐effective than supply‐side expansions.

Suggested Citation

  • David P. Coady & Susan W. Parker, 2004. "Cost‐effectiveness Analysis of Demand‐ and Supply‐side Education Interventions: the Case of PROGRESA in Mexico," Review of Development Economics, Wiley Blackwell, vol. 8(3), pages 440-451, August.
    • Handle: RePEc:bla:rdevec:v:8:y:2004:i:3:p:440-451
    DOI: 10.1111/j.1467-9361.2004.00244.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9361.2004.00244.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9361.2004.00244.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hanushek, Eric A, 1995. "Interpreting Recent Research on Schooling in Developing Countries," The World Bank Research Observer, World Bank, vol. 10(2), pages 227-246, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ludger Wossmann, 2010. "Families, schools and primary-school learning: evidence for Argentina and Colombia in an international perspective," Applied Economics, Taylor & Francis Journals, vol. 42(21), pages 2645-2665.
    2. Marcos E. Domínguez Viera, 2011. "Does the Impact of Oportunidades Program Increases in Highly Competitive Regions?," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 79-111, November.
    3. Mueller, Valerie & Billings, Lucy & Mogues, Tewodaj & Peterman, Amber & Wineman, Ayala, 2015. "Filling the legal void? Experimental evidence from a community-based legal aid program for gender-equal land rights in Tanzania:," IFPRI discussion papers 1434, International Food Policy Research Institute (IFPRI).
    4. Ham, Andrés & Michelson, Hope C., 2018. "Does the form of delivering incentives in conditional cash transfers matter over a decade later?," Journal of Development Economics, Elsevier, vol. 134(C), pages 96-108.
    5. Diane Charlton & J. Edward Taylor, 2020. "Rural school access and the agricultural transformation," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 641-654, September.
    6. F.Rosati & M. Rossi, 2007. "Impact of school quality on child labor and school attendance: the case of CONAFE Compensatory Education Program in Mexico," UCW Working Paper 21, Understanding Children's Work (UCW Programme).
    7. Kellermann, Kersten & Schlag, Carsten-Henning, 2006. "Bildung als öffentliche Aufgabe in Liechtenstein: Eine ökonomische Analyse des Bildungswesens unter besonderer Berücksichtigung der Hochschule. Studie im Auftrag der Regierung des Fürstentums Liechten," KOFL Studien, Konjunkturforschungsstelle Liechtenstein (KOFL), Vaduz, volume 3, number 3.
    8. Brent, Robert J., 2013. "A cost-benefit framework for evaluating conditional cash-transfer programs," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 4(2), pages 159-180, August.
    9. Estevan, Fernanda, 2013. "The impact of conditional cash transfers on public education expenditures: A political economy approach," European Journal of Political Economy, Elsevier, vol. 32(C), pages 268-284.
    10. Lay, Jann, 2010. "MDG achievements, determinants and resource needs : what has been learnt ?," Policy Research Working Paper Series 5320, The World Bank.
    11. Lentz, Erin C. & Barrett, Christopher B., 2013. "The economics and nutritional impacts of food assistance policies and programs," Food Policy, Elsevier, vol. 42(C), pages 151-163.
    12. Amarante, Véronica & Ferrando, Mery & Vigorito, Andrea, 2011. "School Attendance, Child Labor and Cash Transfer: An impact evaluation of PANES," PEP Policy Briefs 164618, Partnership for Economic Policy (PEP).
    13. John A. Maluccio & Alexis Murphy & Ferdinando Regalia, 2009. "Does Supply Matter? Initial Supply Conditions and the Effectiveness of Conditional Cash Transfers for Grade Progression in Nicaragua," Middlebury College Working Paper Series 0908, Middlebury College, Department of Economics.
    14. 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.
    15. Independent Evaluation Group, 2014. "Social Safety Nets and Gender : Learning from Impact Evaluations and World Bank Projects," World Bank Publications - Books, The World Bank Group, number 21365, December.
    16. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications - Books, The World Bank Group, number 2597, December.
    17. Raymundo M. Campos†Vazquez & Alma S. Santillan, 2018. "Supply of schooling and dropout rates: Evidence from the Oportunidades programme in Mexico," Development Policy Review, Overseas Development Institute, vol. 36(4), pages 445-464, July.
    18. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers 172, International Food Policy Research Institute (IFPRI).
    19. Raymond, Melanie & Sadoulet, Elisabeth, 2003. "Educational Grants Closing the Gap in Schooling Attainment between Poor and Non-Poor," CUDARE Working Papers 25034, University of California, Berkeley, Department of Agricultural and Resource Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:lan:wpaper:4471 is not listed on IDEAS
    2. Fatma El-Hamidi, 2006. "General or Vocational Schooling? Evidence on School Choice, Returns, and 'Sheepskin' Effects from Egypt 1998," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(2), pages 157-176.
    3. Ludger Wößmann, 2005. "Educational Production in East Asia: The Impact of Family Background and Schooling Policies on Student Performance," German Economic Review, Verein für Socialpolitik, vol. 6(3), pages 331-353, August.
    4. Josselin Thuilliez, 2007. "Malaria and Primary Education: A Cross-Country Analysis on Primary Repetition and Completion Rates," Post-Print halshs-00144666, HAL.
    5. Castelló-Climent, Amparo & Hidalgo-Cabrillana, Ana, 2012. "The role of educational quality and quantity in the process of economic development," Economics of Education Review, Elsevier, vol. 31(4), pages 391-409.
    6. Jamison, Eliot A. & Jamison, Dean T. & Hanushek, Eric A., 2007. "The effects of education quality on income growth and mortality decline," Economics of Education Review, Elsevier, vol. 26(6), pages 771-788, December.
    7. Jean Drèze & Geeta Gandhi Kingdon, 2001. "School Participation in Rural India," Review of Development Economics, Wiley Blackwell, vol. 5(1), pages 1-24, February.
    8. Swaroop, Vinaya, 1996. "The public sector in the Caribbean : issues and reform options," Policy Research Working Paper Series 1609, The World Bank.
    9. Silvio Fernando López Mera, 2015. "Perfil de los maestros oficiales de Medellín, Colombia," Revista Equidad y Desarrollo, Universidad de la Salle, May.
    10. Harold Alderman & Peter F. Orazem & Elizabeth M. Paterno, 2001. "School Quality, School Cost, and the Public/Private School Choices of Low-Income Households in Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 304-326.
    11. Gundlach, Erich, 2003. "Nach dem PISA-Schock: höhere Bildungsausgaben oder umfassende Bildungsreform?," Open Access Publications from Kiel Institute for the World Economy 3751, Kiel Institute for the World Economy (IfW Kiel).
    12. Muhammad Ayoob Sheikh & Zareen Abbassi, 2007. "Educational Approach To Character Building : A Paradigm Shift," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 3(2), pages 3-7.
    13. Hans J. Baumgartner, 2003. "Are There Any Class Size Effects On Early Career Earnings In West Germany?," HEW 0305004, University Library of Munich, Germany, revised 05 Nov 2003.
    14. Paul Glewwe, 2002. "Schools and Skills in Developing Countries: Education Policies and Socioeconomic Outcomes," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 436-482, June.
    15. Abhijit V. Banerjee & Shawn Cole & Esther Duflo & Leigh Linden, 2007. "Remedying Education: Evidence from Two Randomized Experiments in India," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 1235-1264.
    16. Miguel, Ted, 1999. "Ethnic diversity, mobility and school funding: theory and evidence from Kenya," LSE Research Online Documents on Economics 6675, London School of Economics and Political Science, LSE Library.
    17. Mona Said & Fatma El-Hamidi, 2008. "Taking Technical Education Seriously in MENA: Determinants, Labor Market Implications and Policy Lessons," Working Papers 450, Economic Research Forum, revised 09 Jan 2008.
    18. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers 587, RAND Corporation.
    19. Lorenzo Cappellari & Claudio Lucifora & Dario Pozzoli, 2012. "Determinants of grades in maths for students in economics," Education Economics, Taylor & Francis Journals, vol. 20(1), pages 1-17, February.
    20. Sylvie Moulin & Michael Kremer & Paul Glewwe, 2009. "Many Children Left Behind? Textbooks and Test Scores in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 112-135, January.
    21. Sulis, Isabella & Giambona, Francesca & Porcu, Mariano, 2020. "Adjusted indicators of quality and equity for monitoring the education systems over time. Insights on EU15 countries from PISA surveys," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:8:y:2004:i:3:p:440-451. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.