Template-Type: ReDIF-Paper 1.0
Title: High School Track Choice and Liquidity Constraints: Evidence from Urban Mexico
Number: 0195be34-77f6-4879-a68d-e5402af7bd31
Handle: RePEc:avg:wpaper:en7757
Publication-Status: Published in Research Papers
Author-Name: Ciro Avitabiley
Author-Name: Matteo Bobba and Marco Pariguanax
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 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.
Creation-Date: 2017-11-30
File-URL: https://www.afd.fr/sites/afd/files/imported-files/35XX-papiers-recherche.pdf
File-Format: Application/pdf
Keywords: Amérique latine, Mexique
Classification-JEL: Q
Length: 50