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School subsidies for the poor

  • Schultz, T. Paul

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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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND briefs with number 102.

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Date of creation: 2001
Date of revision:
Handle: RePEc:fpr:fcndbr:102
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  1. Rosenzweig, Mark R & Wolpin, Kenneth I, 1980. "Testing the Quantity-Quality Fertility Model: The Use of Twins as a Natural Experiment," Econometrica, Econometric Society, vol. 48(1), pages 227-40, January.
  2. 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.
  3. Fafchamps, Marcel & Quisumbing, Agnes R., 1999. "Social roles, human capital, and the intrahousehold division of labor," FCND discussion papers 73, International Food Policy Research Institute (IFPRI).
  4. Rosenzweig, Mark R. & Wolpin, Kenneth I., 1982. "Governmental interventions and household behavior in a developing country : Anticipating the unanticipated consequences of social programs," Journal of Development Economics, Elsevier, vol. 10(2), pages 209-225, April.
  5. Duncan Thomas, 1994. "Like Father, like Son; Like Mother, like Daughter: Parental Resources and Child Height," Journal of Human Resources, University of Wisconsin Press, vol. 29(4), pages 950-988.
  6. Datt, Gaurav & Jolliffe, Dean, 1999. "Determinants of Poverty in Egypt," FCND briefs 2, International Food Policy Research Institute (IFPRI).
  7. Datt, Gaurav & Jolliffe, Dean, 1999. "Determinants of poverty in Egypt, 1997," FCND discussion papers 75, International Food Policy Research Institute (IFPRI).
  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.
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