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Policy-Induced Social Interactions and Schooling Decisions

  • Matteo Bobba

    ()

  • Jeremie Gignoux

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 house- holds. This suggests that the intervention has enhanced educational aspirations by triggering social interactions among the targeted population.

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Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4725.

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Date of creation: Dec 2011
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Handle: RePEc:idb:wpaper:4725
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  1. Manuela Angelucci & Giacomo De Giorgi, 2009. "Indirect Effects of an Aid Program: How Do Cash Transfers Affect Ineligibles' Consumption?," American Economic Review, American Economic Association, vol. 99(1), pages 486-508, March.
  2. Filmer, Deon & Schady, Norbert, 2011. "Does more cash in conditional cash transfer programs always lead to larger impacts on school attendance?," Journal of Development Economics, Elsevier, vol. 96(1), pages 150-157, September.
  3. Bruno Crépon & Esther Duflo & Marc Gurgand & Roland Rathelot & Philippe Zamora, 2012. "Do Labor Market Policies Have Displacement Effects? Evidence from a Clustered Randomized Experiment," NBER Working Papers 18597, National Bureau of Economic Research, Inc.
  4. Angelucci, Manuela & De Giorgi, Giacomo & Rangel, Marcos A. & Rasul, Imran, 2009. "Family Networks and School Enrolment: Evidence from a Randomized Social Experiment," IZA Discussion Papers 4497, Institute for the Study of Labor (IZA).
  5. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, 01.
  6. Michael Kremer & Edward Miguel & Rebecca Thornton, 2009. "Incentives to Learn," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 437-456, August.
  7. Parker, Susan W. & Rubalcava, Luis & Teruel, Graciela, 2008. "Evaluating Conditional Schooling and Health Programs," Handbook of Development Economics, Elsevier.
  8. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
  9. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
  10. Gustavo J. Bobonis & Frederico Finan, 2009. "Neighborhood Peer Effects in Secondary School Enrollment Decisions," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 695-716, November.
  11. Chiapa, Carlos & Garrido, José Luis & Prina, Silvia, 2012. "The effect of social programs and exposure to professionals on the educational aspirations of the poor," Economics of Education Review, Elsevier, vol. 31(5), pages 778-798.
  12. Charles F. Manski, 2000. "Economic Analysis of Social Interactions," NBER Working Papers 7580, National Bureau of Economic Research, Inc.
  13. Dubois, Pierre & Rubio-Codina, Marta, 2009. "Child Care Provision: Semiparametric Evidence from a Randomized Experiment in Mexico," CEPR Discussion Papers 7203, C.E.P.R. Discussion Papers.
  14. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, MIT Press, vol. 125(2), pages 515-548, May.
  15. Esther Duflo & Emmanuel Saez, 2002. "The Role of Information and Social Interactions in Retirement Plan Decisions: Evidence from a Randomized Experiment," NBER Working Papers 8885, National Bureau of Economic Research, Inc.
  16. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, 01.
  17. Macours, Karen & Vakis, Renos, 2009. "Changing households'investments and aspirations through social interactions : evidence from a randomized transfer program," Policy Research Working Paper Series 5137, The World Bank.
  18. Filmer, Deon & Schady, Norbert, 2009. "Are there diminishing returns to transfer size in conditional cash transfers ?," Policy Research Working Paper Series 4999, The World Bank.
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