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How Much Are We Willing To Pay to Send Poor Adolescents to School? Simulating Changes to Mexico`s Oportunidades in Urban Areas

Author

Listed:
  • Viviane Azevedo
  • Cesar Bouillon
  • Patricia Yanez-Pagans
Abstract
Although Mexico’s Conditional Cash Transfer Program Oportunidades has increased overall school enrollment, many adolescents do not attend school, especially in urban areas. This paper simulates the effects of changes in program design using a simple parametric method based on a simultaneous probability model of school attendance and child labor. The paper also provides alternative non parametric simulation results by extending Todd and Wolpin’s (2006) method to incorporate changes in working hours when attending school. The results indicate that eliminating or reducing school subsidies for primary education and increasing transfer for older students is a cost-effective way to raise overall school enrollment in urban areas. Increasing school attendance of 16-year-olds to 80 percent or more, however, would require a quadrupling of scholarships. This suggests that complementary interventions are needed.

Suggested Citation

  • Viviane Azevedo & Cesar Bouillon & Patricia Yanez-Pagans, 2009. "How Much Are We Willing To Pay to Send Poor Adolescents to School? Simulating Changes to Mexico`s Oportunidades in Urban Areas," Research Department Publications 4631, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4631
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    References listed on IDEAS

    as
    1. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 57, pages 3607-3709, Elsevier.
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    6. Eliana Cardoso & Andre Portela Souza, 2004. "The Impact of Cash Transfers on Child Labor and School Attendance in Brazil," Vanderbilt University Department of Economics Working Papers 0407, Vanderbilt University Department of Economics.
    7. Kenneth I. Wolpin & Petra E. Todd, 2006. "Assessing the Impact of a School Subsidy Program in Mexico: Using a Social Experiment to Validate a Dynamic Behavioral Model of Child Schooling and Fertility," American Economic Review, American Economic Association, vol. 96(5), pages 1384-1417, December.
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    More about this item

    Keywords

    School attendance and work; Conditional cash transfers; Simulation; Oportunidades;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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