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Credit constraints and demand for remedial education: Evidence from Tanzania

Konrad Burchardi (), Jonathan de Quidt (), Selim Gulesci and Munshi Sulaiman
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Selim Gulesci: Department of Economics, Trinity College, Dublin, BREAD, CEPR, EUDN, J-PAL
Munshi Sulaiman: BRAC Institute of Governance and Development

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: We study how credit constraints affect access to a remedial education program for girls. We gave an unconditional cash transfer to randomly selected households, then measured their Willingness To Pay (WTP) for the program. In the control group average WTP was 3,300 Tanzanian Shillings, seven percent of per-capita monthly expenditures. For those identified at baseline as able to borrow, the cash transfer increases WTP by three percent. For those unable to borrow, the cash transfer increases WTP by 27 percent. We conclude that credit constraints limit access to educational programs, and may increase inequality of outcomes

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Date: 2021
New Economics Papers: this item is included in nep-dev
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