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Credit constraints and demand for remedial education: Evidence from Tanzania

Author

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  • Burchardi, Konrad

    (Institute for International Economic Studies, Stockholm University, BREAD, CEPR, CESifo, ThReD)

  • de Quidt, Jonathan

    (Institute for International Economic Studies, Stockholm University, CAGE, CEPR, CESifo, and ThReD)

  • Gulesci, Selim

    (Department of Economics, Trinity College, Dublin, BREAD, CEPR, EUDN, J-PAL)

  • Sulaiman, Munshi

    (BRAC Institute of Governance and Development)

Abstract

We study how credit constraints affect access to a remedial education program for girls. We gave an unconditional cash transfer to randomly selected households, then measured their Willingness To Pay (WTP) for the program. In the control group average WTP was 3,300 Tanzanian Shillings, seven percent of per-capita monthly expenditures. For those identified at baseline as able to borrow, the cash transfer increases WTP by three percent. For those unable to borrow, the cash transfer increases WTP by 27 percent. We conclude that credit constraints limit access to educational programs, and may increase inequality of outcomes

Suggested Citation

  • Burchardi, Konrad & de Quidt, Jonathan & Gulesci, Selim & Sulaiman, Munshi, 2021. "Credit constraints and demand for remedial education: Evidence from Tanzania," CAGE Online Working Paper Series 545, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:545
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    1. Jack, B. Kelsey & McDermott, Kathryn & Sautmann, Anja, 2022. "Multiple price lists for willingness to pay elicitation," Journal of Development Economics, Elsevier, vol. 159(C).

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    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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