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 hypothesis that the transfer relaxes the liquidity constraints preventing relatively poor students from choosing a schooling career with higher out-of-pocket expenditures and higher expected returns. The observed change in stated preferences across tracks effectively alters school placement, and bears a positive effect on on-time graduation.
pdf : 3.49 MB
available also in : en
3.49 MB (pdf)
downloaded 114 times
on the same regionInstitutional documentpublished in December 2019Research documentCommitted emissions and the risk of stranded assets from power plants in Latin America and the Caribbeanpublished in October 2019Institutional documentpublished in September 2019Research documentpublished in June 2019Vidéopublished in December 2018Vidéopublished in September 2018
on the same topicResearch documentpublished in December 2019Research documentpublished in December 2019Research documentpublished in December 2019Vidéopublished in November 2019Research documentThe economic trigger: Enabling gendered social inclusion processes and outcomes amidst poverty escapes in Niger and Malawipublished in October 2019Vidéopublished in September 2019
from the same collectionResearch documentA single indicator of strong sustainability for development: Theoretical basis and practical implementationpublished in January 2020Research documentCommitted emissions and the risk of stranded assets from power plants in Latin America and the Caribbeanpublished in October 2019Research documentThe economic trigger: Enabling gendered social inclusion processes and outcomes amidst poverty escapes in Niger and Malawipublished in October 2019Research documentReaching Brazil's Nationally Determined Contributions: An Assessment of the Key Transitions in Final Demand and Employmentpublished in October 2019Research documentpublished in October 2019Research documentpublished in October 2019