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School subsidies for the poor

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  • Schultz, T. Paul

Abstract

This paper assesses how the Programa Nacional de Educacion, Salud, y Alimentacion (PROGRESA) program has affected the school enrollment of Mexican youth in the first 15 months of its operation. PROGRESA provides poor mothers in poor rural communities with education grants, if their children attend school regularly. Enrollment rates are compared between groups of poor children who reside in communities randomly selected to participate in the initial phase of the PROGRESA program and those who reside in other comparably poor (control) communities. Pre-program comparisons document how well the randomized design is implemented, and double-differenced estimators are reported over time within this panel of children. Probit models are then estimated for the probability that an individual child is enrolled, which statistically controls for additional characteristics of the child, their parents, local schools, and community, and for samples of different compositions, to evaluate the sensitivity of the estimated program effects to these variations. If the current relationship of the program outlays to enrollments, and that of schooling to increased adult earnings, both persist in the future, the internal rate of return to the PROGRESA educational grants as an investment is estimated to be about 8 percent, which accrues in addition to the program's efficacy as a poverty reduction program.

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  • Schultz, T. Paul, 2001. "School subsidies for the poor," FCND briefs 102, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:fcndbr:102
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    References listed on IDEAS

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    Cited by:

    1. Petra Todd & Kenneth I. Wolpin, 2002. "Using a Social Experiment to Validate a Dynamic Behavioral Model of Child Schooling and Fertility: Assessing the Impact of a School Subsidy Program in Mexico," PIER Working Paper Archive 03-022, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Sep 2003.
    2. Angelucci, Manuela, 2004. "Aid and Migration: An Analysis of the Impact of Progresa on the Timing and Size of Labour Migration," IZA Discussion Papers 1187, Institute of Labor Economics (IZA).
    3. Christopher Udry, 2003. "Child Labor," Working Papers 856, Economic Growth Center, Yale University.
    4. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2001. "Child Labor: Theory, Evidence and Policy," Discussion Papers Series, Department of Economics, Tufts University 0111, Department of Economics, Tufts University.
    5. Coady, David P. & Parker, Susan W., 2002. "A cost-effectiveness analysis of demand- and supply-side education interventions," FCND discussion papers 127, International Food Policy Research Institute (IFPRI).
    6. Berlinski, Samuel & Galiani, Sebastian, 2007. "The effect of a large expansion of pre-primary school facilities on preschool attendance and maternal employment," Labour Economics, Elsevier, vol. 14(3), pages 665-680, June.
    7. Caldés, Natàlia & Coady, David P. & Maluccio, John A., 2004. "The cost of poverty alleviation transfer programs," FCND briefs 174, International Food Policy Research Institute (IFPRI).
    8. Amanda Glassman & Jessica Todd, 2007. "Performance-Based Incentives for Health: Conditional Cash Transfer Programs in Latin America and the Caribbean," Working Papers 120, Center for Global Development.
    9. Cynthia B. Lloyd, 2001. "World population in 2050: assessing the projections: discussion," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 46.
    10. Orazem, Peter F. & Gunnarsson, Louise Victoria, 2004. "Child Labour, School Attendance And Performance: A Review," Working Papers 18213, Iowa State University, Department of Economics.
    11. Buddelmeyer, Hielke & Skoufias, Emmanuel, 2003. "An Evaluation of the Performance of Regression Discontinuity Design on PROGRESA," IZA Discussion Papers 827, Institute of Labor Economics (IZA).
    12. Susan W. Parker & Luis Rubalcava & Graciela Teruel, 2002. "Schooling Inequality among the Indigenous: A Problem of Resources or Language Barriers?," Research Department Publications 3134, Inter-American Development Bank, Research Department.
    13. Skoufias, Emmanuel & McClafferty, Bonnie, 2001. "Is PROGRESA working?," FCND briefs 118, International Food Policy Research Institute (IFPRI).
    14. Rawlings, Laura B. & Rubio, Gloria M., 2003. "Evaluating the impact of conditional cash transfer programs : lessons from Latin America," Policy Research Working Paper Series 3119, The World Bank.
    15. Gustav Ranis, 2004. "The Evolution of Development Thinking: Theory and Policy," Working Papers 886, Economic Growth Center, Yale University.
    16. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers 172, International Food Policy Research Institute (IFPRI).

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