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School Subsidies for the Poor: Evaluating the Mexican Progresa Poverty Program

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  • T. Paul Schultz

    (Economic Growth Center)

Abstract

This paper evaluates how the Progresa Program, which provides poor mothers in rural Mexico with education grants, has affected enrollment. Poor children who reside in communities randomly selected to participate in the initial phase of the Progresa are compared to those who reside in other (control) communities. Pre-program comparisons check the randomized design, and double- difference estimators of the program's effect on the treated are calculated by grade and sex. Probit models are also estimated for the probability a child is enrolled, controlling for additional characteristics of the child, their parents, local schools, and community, and for sample attrition, to evaluate the sensitivity of the program estimates. These estimates of program short-run effects on enrollment are extrapolated to the lifetime schooling and the earnings of adults to approximate the internal rate of return on the public schooling subsidies as they increase expected private wages.

Suggested Citation

  • T. Paul Schultz, 2001. "School Subsidies for the Poor: Evaluating the Mexican Progresa Poverty Program," Working Papers 834, Economic Growth Center, Yale University.
  • Handle: RePEc:egc:wpaper:834
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    File URL: http://www.econ.yale.edu/growth_pdf/cdp834.pdf
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    More about this item

    Keywords

    School Enrollment; School Subsidies; Poverty Program Evaluation; Mexico;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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