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

Author

Listed:
  • Gutierrez Emilio
  • Juárez González Laura
  • Rubli Adrian

Abstract

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.

Suggested Citation

  • Gutierrez Emilio & Juárez González Laura & Rubli Adrian, 2015. "The Effect of a Transfer Program for the Elderly in Mexico City on Co-Residing Children's School Enrollment," Working Papers 2015-09, Banco de México.
  • Handle: RePEc:bdm:wpaper:2015-09
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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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    References listed on IDEAS

    as
    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, pages 1-27.
    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, pages 89-112.
    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, 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, pages 454-463.
    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. 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, pages 1-27.
    9. Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, pages 386-414.
    10. 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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    Cited by:

    1. Jorge Alonso & Catalina Amuedo-Dorantes & Laura Juárez, 2016. "The Effect of Non-contributory Pensions on Saving in Mexico," IDB Publications (Working Papers) 7861, Inter-American Development Bank.
    2. Jorge Alonso & Catalina Amuedo-Dorantes & Laura Juárez, 2016. "The Effect of Non-contributory Pensions on Saving in Mexico," IDB Publications (Working Papers) 95976, Inter-American Development Bank.

    More about this item

    Keywords

    Government transfers; school enrollment.;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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