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Policy-Induced Social Interactions and Schooling Decisions

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  • Bobba, Matteo
  • Gignoux, Jérémie

Abstract

This paper considers a conditional cash transfer program targeting poor households in small rural villages and studies the effects of the geographic proximity between villages on individual enrollment decisions. Exploiting variations in the treatment status across contiguous villages generated by the randomized evaluation design, the paper finds that the additional effect stemming from the density of neighboring recipients amounts to roughly one third of the direct effect of program receipt. Importantly, these spatial externalities are concentrated among children from beneficiary households. This suggests that the intervention has enhanced educational aspirations by triggering social interactions among the targeted population.

Suggested Citation

  • Bobba, Matteo & Gignoux, Jérémie, 2012. "Policy-Induced Social Interactions and Schooling Decisions," IDB Publications (Working Papers) 3950, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:3950
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    1. Deryugin, Alexander N. (Дерюгин, Александр), 2016. "Regional Equalization: Are there Incentives to Development? [Выравнивание Регионов: Остаются Ли Стимулы К Развитию?]," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 170-191, December.

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    More about this item

    Keywords

    Spatial externalities; Social interactions; Peer effects; Conditional cash transfers;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • I2 - Health, Education, and Welfare - - Education
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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