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School Dropouts and Conditional Cash Transfers: Evidence from a Randomised Controlled Trial in Rural China's Junior High Schools

Author

Listed:
  • Di Mo
  • Linxiu Zhang
  • Hongmei Yi
  • Renfu Luo
  • Scott Rozelle
  • Carl Brinton

Abstract

The overall goal of this study is to examine if there is a dropout problem in rural China and to explore the effectiveness of a Conditional Cash Transfer (CCT) programme on the rate of dropping out. To meet this goal, we conduct a randomised controlled trial (RCT) to assess the impact of the CCT using a sample of the poorest 300 junior high school students in a nationally-designated poor county in Northwest China. We find that the annual dropout rate in the study county was 7.8 per cent and even higher, 13.3 per cent, among the children of poor households. We demonstrate that a CCT program reduces dropout by 60 per cent. The programme is most effective among students with poor academic performance, and likely more effective among girls and younger students.

Suggested Citation

  • Di Mo & Linxiu Zhang & Hongmei Yi & Renfu Luo & Scott Rozelle & Carl Brinton, 2013. "School Dropouts and Conditional Cash Transfers: Evidence from a Randomised Controlled Trial in Rural China's Junior High Schools," Journal of Development Studies, Taylor & Francis Journals, vol. 49(2), pages 190-207, February.
    • Handle: RePEc:taf:jdevst:v:49:y:2013:i:2:p:190-207
    DOI: 10.1080/00220388.2012.724166
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    1. Joshua Angrist & Victor Lavy, 2009. "The Effects of High Stakes High School Achievement Awards: Evidence from a Randomized Trial," American Economic Review, American Economic Association, vol. 99(4), pages 1384-1414, September.
    2. World Bank, 2003. "World Development Indicators 2003," World Bank Publications - Books, The World Bank Group, number 13920, April.
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