Targeting and calibrating educational grants for greater efficiency
Using grants programs to induce poor parents to send their children to school has received considerable attention as an instrument to break the inheritance of poverty. Yet, the cost of these programs tends to be quite high so that increasing their efficiency is an important issue that needs to be researched. We use the educational component of Progresa in Mexico to explore alternative targeting and calibrating schemes to achieve this purpose. We show that targeting on risk of nonenrollment instead of targeting on poverty, as currently done, would be implementable and create huge efficiency gains. To start with, this would concentrate grants on secondary school since attendance to primary school is virtually universal, saving 55% of the educational budget. Targeting the population most likely to drop out of school upon completing primary and allowing for variable transfers across beneficiaries would result in a 72% efficiency gain for that cohort over targeting on poverty and making uniform transfers by gender, reducing leakage cost from 85% to 53% of the budget. Even restricting transfers to be uniform across beneficiaries but set at the optimal level would achieve a 65% efficiency gain. However, to make the scheme easy to implement, only observable, transparent, and non-manipulable indicators of risk should be used and discrete levels of transfers offered. This would still result in a 53% efficiency gain over the current scheme.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2003|
|Contact details of provider:|| Postal: 207 Giannini Hall #3310, Berkeley, CA 94720-3310|
Phone: (510) 642-3345
Fax: (510) 643-8911
Web page: http://areweb.berkeley.edu/library/Main/CUDARE
More information through EDIRC
|Order Information:|| Postal: University of California, Giannini Foundation of Agricultural Economics Library, 248 Giannini Hall #3310, Berkeley CA 94720-3310|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bourguignon, Francois & Ferreira, Francisco H. G. & Leite, Phillippe G., 2002.
"Ex-ante evaluation of conditional cash transfer programs: the case of bolsa escola,"
Policy Research Working Paper Series
2916, The World Bank.
- Fran??ois Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2002. "Ex-ante Evaluation of Conditional Cash Transfer Programs: The Case of Bolsa Escola," William Davidson Institute Working Papers Series 516, William Davidson Institute at the University of Michigan.
- Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
- Behrman, Jere R & Sengupta, Piyali & Todd, Petra, 2005. "Progressing through PROGRESA: An Impact Assessment of a School Subsidy Experiment in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 237-275, October.
- Behrman, Jere R & Knowles, James C, 1999. "Household Income and Child Schooling in Vietnam," World Bank Economic Review, World Bank Group, vol. 13(2), pages 211-256, May.
- Deon Filmer & Lant Pritchett, 1999. "The Effect of Household Wealth on Educational Attainment: Evidence from 35 Countries," Population and Development Review, The Population Council, Inc., vol. 25(1), pages 85-120.
When requesting a correction, please mention this item's handle: RePEc:are:cudare:985. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jeff Cole)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.