Social Interactions and Schooling Decisions

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Serval ID
serval:BIB_D0C53DD398AF
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Social Interactions and Schooling Decisions
Journal
Review of Economics and Statistics
Author(s)
Lalive R., Cattaneo A.
ISSN
0034-6535
Publication state
Published
Issued date
08/2009
Peer-reviewed
Oui
Volume
91
Number
3
Pages
457-477
Language
english
Abstract
The aim of this paper is to study whether a child's schooling choices are affected by the schooling choices of other children. Identification is based on a randomized targeted intervention that grants a cash subsidy conditional on school attendance to a subgroup of eligible children within small rural villages in Mexico (PROGRESA). This policy change spills over to ineligible children if social interactions are relevant. Results indicate that the eligible children tend to attend school more frequently, and the ineligible children acquire more schooling when the subsidy is introduced in their local village. Moreover, the overall effect of PROGRESA on eligible children is the sum of a direct effect due to cash transfers and an indirect effect due to changes in peer group schooling. Interestingly, the social interactions effect is almost as important as the direct effect.
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Create date
18/02/2008 9:51
Last modification date
20/08/2019 15:51
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