Do School Subsidies Promote Human Capital Investment among the Poor?

Cesar Martinelli () and Susan W. Parker

Scandinavian Journal of Economics, 2008, vol. 110, issue 2, pages 261-276

Abstract: We investigate the hypothesis that conditioning transfers to poor families on school attendance leads to a reallocation of household resources which enhances the human capital of the next generation, via the effect of the conditionality on the shadow price of human capital and (possibly) via the effect of the transfers on household bargaining. We introduce a model to study the effects of conditional transfers on intra-household allocations, and provide suggestive evidence of the importance of price effects using data from a conditional transfer program in Mexico. Copyright © The editors of the "Scandinavian Journal of Economics" 2008 .

Date: 2008

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