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Family Networks and School Enrolment: Evidence from a Randomized Social Experiment

Listed author(s):
  • Angelucci, Manuela

    ()

    (University of Michigan)

  • De Giorgi, Giacomo

    ()

    (Federal Reserve Bank of New York)

  • Rangel, Marcos A.

    ()

    (Harris School, University of Chicago)

  • Rasul, Imran

    ()

    (University College London)

We present evidence on whether and how a household's behavior is influenced by the presence and characteristics of its extended family. Using data from the PROGRESA program in Mexico, we exploit information on the paternal and maternal surnames of heads and spouses in conjunction with the Spanish naming convention to identify the inter and intra generational family links of each household to others in the same village. We then exploit the randomized research design of the PROGRESA evaluation data to identify whether the treatment effects of PROGRESA transfers on secondary school enrolment vary according to the characteristics of extended family. We find PROGRESA only raises secondary enrolment among households that are embedded in a family network. Eligible but isolated households do not respond. The mechanism through which the extended family influences household schooling choices is the redistribution of resources within the family network from eligibles that receive de facto unconditional cash transfers from PROGRESA, towards eligibles on the margin of enrolling children into secondary school.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4497.

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Length: 45 pages
Date of creation: Oct 2009
Publication status: published in: Journal of Public Economics, 2010, 94 (3-4), 197-221
Handle: RePEc:iza:izadps:dp4497
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