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Do School Subsidies Promote Human Capital Accumulation among the Poor?

Cesar Martinelli () and Susan Parker ()

No 306, Working Papers from Centro de Investigacion Economica, ITAM

Abstract: We investigate the hypothesis that conditioning transfers to poor families on school attendance leads to a reallocation of household resources enhancing the human capital of the next generation, via the effect of the conditionality on the shadow price of human capital. We estimate the price effect of conditional transfers to mothers on intrahousehold allocations using data from a social program in Mexico, and show that price effects are large and statistically significant. The estimates suggest that household resources beyond those directly subject to conditionality have been reallocated favorably to children's human capital.

Date: Written 2003-09
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http://ftp.itam.mx/pub/academico/inves/martinelli/03-06.pdf First version, 2003 (application/pdf)

Related works:
Working Paper: Do School Subsidies Promote Human Capital Accumulation among the Poor? (2007) Downloads
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Handle: RePEc:cie:wpaper:0306