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Paying disadvantaged teenagers to stay in school

Author

Listed:
  • Jack Britton
  • Nick Ridpath
  • Ben Waltmann
  • Carmen Villa

Abstract

We evaluate the Education Maintenance Allowance, a large conditional cash transfer scheme that paid low-income teenagers in England to remain in education beyond age 16. Using the staggered national roll-out of the program and linked administrative data tracking education, earnings, welfare payments and criminal convictions to age 31, we find no significant overall effect of the policy on labor market outcomes or criminality. High-attaining students were more likely to attend university but no more likely to graduate. Low-attaining students committed fewer crimes. Point estimates suggest the overall Marginal Value of Public Funds was below one, indicating low cost-effectiveness.

Suggested Citation

  • Jack Britton & Nick Ridpath & Ben Waltmann & Carmen Villa, 2025. "Paying disadvantaged teenagers to stay in school," RFBerlin Discussion Paper Series 25131, ROCKWOOL Foundation Berlin (RFBerlin).
    • Handle: RePEc:crm:wpaper:25131
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    Keywords

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    JEL classification:

    • 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
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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