The effect of cash transfers to schools on voluntary contributions
Rosangela Bando
Journal of Economic Behavior & Organization, 2015, vol. 111, issue C, 224-236
Abstract:
School-based management programs aim to improve education outcomes by involving parents in allocation decisions about external funds transferred to the school. This paper explores the effects of two school-based management programs on parental investment in schools via voluntary contributions. One program provides both a cash grant and a matching scheme for privately raised funds. Difference-in-differences estimation shows that parents in richer schools increased voluntary contributions by 28%, while parents in poorer schools decreased voluntary contributions by 11%. This implies that a matching scheme results in higher inequality in resources available to schools. The second program provides only a cash grant to poor schools. Based on a randomized control, estimation shows that parents use 83% of the grant to substitute for voluntary contributions. A cash grant alone for poor schools results in an increase in resources available to the school in less than the cash grant transfer.
Keywords: Education; Investment; Parental investment; School based management; School grants; Voluntary contributions (search for similar items in EconPapers)
JEL-codes: D1 H5 I2 O2 (search for similar items in EconPapers)
Date: 2015
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Working Paper: The Effect of Cash Transfers to Schools on Voluntary Contributions (2014) 
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:111:y:2015:i:c:p:224-236
DOI: 10.1016/j.jebo.2014.12.024
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