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When being out of school can be bad for the school: a case for conditional cash transfers

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  • Fernanda Estevan

    (Department of Economics, University of Ottawa, Ottawa, ON)

Abstract

We develop a theoretical model to analyze how the lack of full enrollment affects the quality of public education chosen by majority voting. In our model, the households choose whether to enrol their child at school or not. Poor households do not send their children to school because there is an opportunity cost related to education. We show that if preferences for public education quality are decreasing in income, an ends against the middle equilibrium may arise with low levels of expenditures. In this setting, the introduction of a conditional cash transfer program may increase the educational budget chosen by majority voting. Indeed, by raising school enrollment, it increases the political support for educational expenditures.

Suggested Citation

  • Fernanda Estevan, 2009. "When being out of school can be bad for the school: a case for conditional cash transfers," Working Papers 0915E, University of Ottawa, Department of Economics.
    • Handle: RePEc:ott:wpaper:0915e
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    References listed on IDEAS

    as
    1. David De La Croix & Matthias Doepke, 2009. "To Segregate or to Integrate: Education Politics and Democracy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(2), pages 597-628.
    2. de Janvry, Alain & Finan, Frederico & Sadoulet, Elisabeth & Vakis, Renos, 2006. "Can conditional cash transfer programs serve as safety nets in keeping children at school and from working when exposed to shocks?," Journal of Development Economics, Elsevier, vol. 79(2), pages 349-373, April.
    3. Cohen-Zada, Danny & Justman, Moshe, 2003. "The political economy of school choice: linking theory and evidence," Journal of Urban Economics, Elsevier, vol. 54(2), pages 277-308, September.
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    More about this item

    Keywords

    school enrollment; conditional cash transfers; political economy;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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