Do larger school grants improve educational attainment? Evidence from urban Mexico. Issue 4 (2nd October 2021)

• Record Type: Journal Article
• Authors: Araujo, M. Caridad; Martinez, M. Adelaida; Martinez, Sebastian; Perez, Michelle; Sanchez, Mario
• Is Part Of: Journal of development effectiveness. Volume 13:Issue 4(2021)
• Page Start: 405
• Page End: 423
• Publication Date: 2021-10-02
• Subjects: Cash transfers -- scholarship -- grants -- school dropout -- high school graduation -- Mexico -- Progresa -- Oportunidades -- Prospera; Economic development -- Periodicals; Developing countries -- Economic conditions -- Periodicals; Economic development; Economic history; Developing countries; Periodicals; 338.91724
• DOI: 10.1080/19439342.2021.1968933
• Languages: English
• ISSNs: 1943-9342

Abstract

ABSTRACT: We study the effects of larger cash grants on the educational attainment of low-income middle and high school students in Mexico. Starting in 2009, school grants from the Oportunidades conditional cash transfer programme increased by 27 percent for females and 30 percent for males in 263 of 551 urban localities. Using a difference-in-difference analysis of longitudinal programme registries linked to national standardised tests, we find that students with larger grants experienced lower dropout rates in middle school and were more likely to graduate from high school on time. Specifically, the likelihood of graduation increased by 38.7 percent for females and 41.3 percent for males, suggesting an elastic response to the larger grants.