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High School Track Choice and Financial Constraints:Evidence from Urban Mexico

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  • Avitabile, Ciro
  • Bobba, Matteo
  • Pariguana, Marco

Abstract

We study how a large household windfall affects sorting of relatively disadvantaged youth over high school tracks by exploiting the discontinuity in the assignment of a welfare program in Mexico. The in-cash transfer is found to significantly increase the probability of selecting vocational schools as the most preferred options vis-a-vis other more academically oriented education modalities. We find support for the hypothe- sis that the receipt of unearned income allows some students to choose a schooling career with higher out-of-pocket expenditures and higher expected returns. The ob- served change in stated preferences across tracks effectively alters school placement, and bears a positive effect on later education outcomes.

Suggested Citation

  • Avitabile, Ciro & Bobba, Matteo & Pariguana, Marco, 2016. "High School Track Choice and Financial Constraints:Evidence from Urban Mexico," TSE Working Papers 16-661, Toulouse School of Economics (TSE), revised May 2017.
  • Handle: RePEc:tse:wpaper:30495
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    References listed on IDEAS

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    Cited by:

    1. Avitabile, Ciro & de Hoyos, Rafael, 2018. "The heterogeneous effect of information on student performance: Evidence from a randomized control trial in Mexico," Journal of Development Economics, Elsevier, vol. 135(C), pages 318-348.

    More about this item

    Keywords

    school choice; tracking; financial constraints; vocational education; returns to education; regression discontinuity design;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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