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High School Track Choice and Financial Constraints: Evidence from Urban Mexico

Author

Listed:
  • Ciro Avitabile

    (UNIS - University of Surrey, BM = WB - La Banque Mondiale = The World Bank - WBG = GBM - World Bank Group = Groupe Banque Mondiale)

  • Matteo Bobba

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Marco Pariguana

    (UWO - University of Western Ontario)

Abstract

We study how a large household windfall affects sorting of relatively disadvantaged youth over high school tracks by exploiting the discontinuity in the assignment of a welfare program in Mexico. The in-cash transfer is found to significantly increase the probability of selecting vocational schools as the most preferred options vis-a-vis other more academically oriented education modalities. We find support for the hypothe- sis that the receipt of unearned income allows some students to choose a schooling career with higher out-of-pocket expenditures and higher expected returns. The ob- served change in stated preferences across tracks effectively alters school placement, and bears a positive effect on later education outcomes.

Suggested Citation

  • Ciro Avitabile & Matteo Bobba & Marco Pariguana, 2017. "High School Track Choice and Financial Constraints: Evidence from Urban Mexico," Working Papers hal-05086362, HAL.
    • Handle: RePEc:hal:wpaper:hal-05086362
    Note: View the original document on HAL open archive server: https://hal.science/hal-05086362v1
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