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Paying Disadvantaged Teenagers to Stay in School

Author

Listed:
  • Britton, Jack

    (Institute for Fiscal Studies, London)

  • Ridpath, Nick

    (Institute for Fiscal Studies)

  • Villa, Carmen

    (University of Zurich)

  • Waltmann, Ben

    (Institute for Fiscal Studies)

Abstract

We evaluate the Education Maintenance Allowance, a large conditional cash transfer scheme that paid low-income teenagers in England to remain in education beyond age 16. Using the staggered national roll-out of the programme and linked administrative data tracking education, earnings, welfare payments and criminal convictions to age 31, we find no significant overall effect of the policy on labour market outcomes or criminality. High-attaining students were more likely to attend university but no more likely to graduate. Low-attaining students committed fewer crimes. We estimate the Marginal Value of Public Funds was 0.85 (95% confidence interval 0.52–1.29); even at the upper bound of this interval, benefits barely outweigh costs.

Suggested Citation

  • Britton, Jack & Ridpath, Nick & Villa, Carmen & Waltmann, Ben, 2026. "Paying Disadvantaged Teenagers to Stay in School," IZA Discussion Papers 18575, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18575
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    Keywords

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    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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