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The Effect of a Transfer Program for the Elderly in Mexico City on Co-Residing Children's School Enrollment

Listed author(s):
  • Gutierrez Emilio
  • Juárez González Laura
  • Rubli Adrian

This paper studies whether the increase in government transfers, induced by an old-age pension program for individuals age 70 and older in Mexico, affects co-residing children's school enrollment, using a regression discontinuity analysis. Results suggest that while household composition and other household-level characteristics do not change significantly at the cutoff age for program eligibility, co-residing children's school enrollment increases significantly. This suggests that public resources for older adults might generate benefits for other age groups. An additional finding is that the increase in school enrollment takes places mostly at the program eligibility cutoff and not before. Given that the program transfer is known and potentially anticipated by individuals who are only a few years away from being eligible, this suggests that households might have credit constraints.

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File URL: http://www.banxico.org.mx/publicaciones-y-discursos/publicaciones/documentos-de-investigacion/banxico/%7B1AA1DBF5-0CDA-ACB3-DA6B-AD910F8C509C%7D.pdf
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Paper provided by Banco de México in its series Working Papers with number 2015-09.

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Date of creation: Apr 2015
Handle: RePEc:bdm:wpaper:2015-09
Contact details of provider: Web page: http://www.banxico.org.mx

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  1. Juarez Laura, 2010. "The Effect of an Old-Age Demogrant on the Labor Supply and Time Use of the Elderly and Non-Elderly in Mexico," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-27, June.
  2. Esther Duflo, 2003. "Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa," World Bank Economic Review, World Bank Group, vol. 17(1), pages 1-25, June.
  3. Jensen, Robert T., 2004. "Do private transfers 'displace' the benefits of public transfers? Evidence from South Africa," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 89-112, January.
  4. Marianne Bertrand & Sendhil Mullainathan & Douglas Miller, 2003. "Public Policy and Extended Families: Evidence from Pensions in South Africa," World Bank Economic Review, World Bank Group, vol. 17(1), pages 27-50, June.
  5. Irineu Evangelista de Carvalho Filho, 2012. "Household Income as a Determinant of Child Labor and School Enrollment in Brazil: Evidence from a Social Security Reform," Economic Development and Cultural Change, University of Chicago Press, vol. 60(2), pages 399-435.
  6. Juarez, Laura, 2009. "Crowding out of private support to the elderly: Evidence from a demogrant in Mexico," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 454-463, April.
  7. Andrew Gelman & Guido Imbens, 2014. "Why High-order Polynomials Should not be Used in Regression Discontinuity Designs," NBER Working Papers 20405, National Bureau of Economic Research, Inc.
  8. Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, vol. 81(2), pages 386-414, December.
  9. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, Oxford University Press, vol. 125(2), pages 515-548.
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