Social Interactions and Schooling Decisions

Rafael Lalive and Alejandra Cattaneo

No 5816, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The aim of this paper is to study whether schooling choices are affected by social interactions. Such social interactions may be important because children enjoy spending time with other children or parents learn from other parents about the ability of their children. Identification is based on a randomized intervention that grants a cash subsidy encouraging school attendance among a sub-group of eligible children within small rural villages in Mexico. Results indicate that (i) the eligible children tend to attend school more frequently, (ii) but also the neligible children acquire more schooling when the subsidy is introduced in their local village, (iii) social interactions are economically important, and (iv) they may arise due to changes in parents? perception of their children?s ability.

Keywords: Peer effects; Schooling; Field experiment; Progresa (search for similar items in EconPapers)
JEL-codes: C93 I21 I28 (search for similar items in EconPapers)
Date: 2006-09
New Economics Papers: this item is included in nep-edu, nep-soc and nep-ure
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Social Interactions and Schooling Decisions (2006)
Working Paper: Social Interactions and Schooling Decisions (2006)
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