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Policy-Induced Social Interactions and Schooling Decisions

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  • Matteo Bobba
  • Jeremie Gignoux

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

Suggested Citation

  • Matteo Bobba & Jeremie Gignoux, 2011. "Policy-Induced Social Interactions and Schooling Decisions," Research Department Publications 4725, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4725
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    More about this item

    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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