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

  • T. Paul Schultz

    ()

    (Economic Growth Center)

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    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.

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    File URL: http://www.econ.yale.edu/growth_pdf/cdp834.pdf
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    Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 834.

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    Length: 72 pages
    Date of creation: Aug 2001
    Date of revision:
    Handle: RePEc:egc:wpaper:834
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    Web page: http://www.econ.yale.edu/

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    1. Thomas, D., 1995. "Like Father, Like Son, Like Mother, Like Daughter, Parental Resources and Child Height," Papers 95-01, RAND - Reprint Series.
    2. Olsen, Randall J. & Farkas, George, 1985. "Conception intervals and the substitution of fertility over time," Journal of Econometrics, Elsevier, vol. 28(1), pages 103-112, April.
    3. White, Halbert, 1982. "Instrumental Variables Regression with Independent Observations," Econometrica, Econometric Society, vol. 50(2), pages 483-99, March.
    4. Lockheed, Marlaine E & Jamison, Dean T & Lau, Lawrence J, 1987. "Farmer Education and Farm Efficiency: Reply," Economic Development and Cultural Change, University of Chicago Press, vol. 35(3), pages 643-44, April.
    5. Mark R. Rosenzweig, 1999. "Welfare, Marital Prospects, and Nonmarital Childbearing," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S3-S32, December.
    6. Cesar Martinelli & Susan W. Parker, 2003. "Should Transfers To Poor Families Be Conditional On School Attendance? A Household Bargaining Perspective," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 523-544, 05.
    7. Olsen, Randall J & Farkas, George, 1990. "The Effect of Economic Opportunity and Family Background on Adolescent Cohabitation and Childbearing among Low-Income Blacks," Journal of Labor Economics, University of Chicago Press, vol. 8(3), pages 341-62, July.
    8. Tansel, Aysit, 1997. "Schooling Attainment, Parental Education, and Gender in Cote d'Ivoire and Ghana," Economic Development and Cultural Change, University of Chicago Press, vol. 45(4), pages 825-56, July.
    9. Cesar Patricio Bouillon & Arianna Legovini & Nora Lustig, 2003. "Rising Inequality in Mexico: Household Characteristics and Regional Effects," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 112-133.
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