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Effects on School Enrollment and Performance of a Conditional Cash Transfers Program in Mexico

Author

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  • de Janvry, Alain
  • Dubois, Pierre
  • Sadoulet, Elisabeth

Abstract

We study the effects of a conditional cash transfers program on school enrollment and performance in Mexico. We provide a theoretical framework for analyzing the dynamic educational process including the endogeneity and uncertainty of performance at school (passing grades) and the effect of a cash transfer program conditional on school attendance. This framework is developed to study the Mexican social program Progresa (called now Oportunidades) in which a randomized experiment has been implemented and allows us to identify the effect of the program on enrollment and performance at school. Using the rules of the conditional program, we can explain the different incentive effects provided. We also derive the formal identifying assumptions needed to estimate consistently the average treatment effects on enrollment and performance at school. We find empirically that this program had always a positive impact on school continuation whereas for performance it had a positive impact at primary school but a negative one at secondary school (a possible consequence of disincentives due to the program termination after the third year of secondary school).

Suggested Citation

  • de Janvry, Alain & Dubois, Pierre & Sadoulet, Elisabeth, 2007. "Effects on School Enrollment and Performance of a Conditional Cash Transfers Program in Mexico," CEPR Discussion Papers 6069, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:6069
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    References listed on IDEAS

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    1. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 262-333, April.
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    5. Orazio P. Attanasio & Costas Meghir & Ana Santiago, 2012. "Education Choices in Mexico: Using a Structural Model and a Randomized Experiment to Evaluate PROGRESA," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 37-66.
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    7. Christopher R. Taber, 2001. "The Rising College Premium in the Eighties: Return to College or Return to Unobserved Ability?," Review of Economic Studies, Oxford University Press, vol. 68(3), pages 665-691.
    8. Keane, Michael P & Wolpin, Kenneth I, 1997. "The Career Decisions of Young Men," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 473-522, June.
    9. Rosenzweig, Mark R & Wolpin, Kenneth I, 1995. "Sisters, Siblings, and Mothers: The Effect of Teen-Age Childbearing on Birth Outcomes in a Dynamic Family Context," Econometrica, Econometric Society, vol. 63(2), pages 303-326, March.
    10. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts," NBER Working Papers 6385, National Bureau of Economic Research, Inc.
    11. Manski, Charles F., 1985. "Semiparametric analysis of discrete response : Asymptotic properties of the maximum score estimator," Journal of Econometrics, Elsevier, vol. 27(3), pages 313-333, March.
    12. Alain de Janvry & Elisabeth Sadoulet, 2006. "Making Conditional Cash Transfer Programs More Efficient: Designing for Maximum Effect of the Conditionality," World Bank Economic Review, World Bank Group, vol. 20(1), pages 1-29.
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    15. Zvi Eckstein & Kenneth I. Wolpin, 1999. "Why Youths Drop Out of High School: The Impact of Preferences, Opportunities, and Abilities," Econometrica, Econometric Society, vol. 67(6), pages 1295-1340, November.
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    Citations

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    Cited by:

    1. Heinrich, Carolyn J., 2007. "Demand and Supply-Side Determinants of Conditional Cash Transfer Program Effectiveness," World Development, Elsevier, vol. 35(1), pages 121-143, January.
    2. Fatoke Dato, Mafaizath A., 2015. "Impact of income shock on children’s schooling and labor in a West African country," MPRA Paper 64317, University Library of Munich, Germany.
    3. Del Rey, Elena & Estevan, Fernanda, 2013. "Conditional cash transfers and education quality in the presence of credit constraints," Economics of Education Review, Elsevier, vol. 34(C), pages 76-84.
    4. Marisa Bucheli, 2014. "Public Transfers and Poverty Reduction: an Evaluation of Program Contribution to the Exit Rate from Poverty of Children and the Elderly," Documentos de Trabajo (working papers) 0914, Department of Economics - dECON.
    5. Marisa Bucheli, 2015. "Public Transfers and Poverty Reduction: An Evaluation of Program Contribution to the Exit Rate from Poverty to Children and the Elderly," Commitment to Equity (CEQ) Working Paper Series 27, Tulane University, Department of Economics.
    6. Marisa Bucheli, 2015. "Public Transfers and Poverty Reduction: An Evaluation of Program Contribution to the Exit Rate from Poverty to Children and the Elderly," Commitment to Equity (CEQ) Working Paper Series 1327, Tulane University, Department of Economics.
    7. Felipe Barrera-Osorio & Leigh L. Linden & Juan Saavedra, 2017. "Medium- and Long-Term Educational Consequences of Alternative Conditional Cash Transfer Designs: Experimental Evidence from Colombia," NBER Working Papers 23275, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    dynamic decisions; education demand; Mexico; randomized experiment; school performance; schooling decisions; transfer program; treatment effects;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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