Paying disadvantaged teenagers to stay in school

Jack Britton, Nick Ridpath, Ben Waltmann and Carmen Villa

No 25131, RFBerlin Discussion Paper Series from ROCKWOOL Foundation Berlin (RFBerlin)

Abstract: We evaluate the Education Maintenance Allowance, a large conditional cash transfer scheme that paid low-income teenagers in England to remain in education beyond age 16. Using the staggered national roll-out of the program and linked administrative data tracking education, earnings, welfare payments and criminal convictions to age 31, we find no significant overall effect of the policy on labor market outcomes or criminality. High-attaining students were more likely to attend university but no more likely to graduate. Low-attaining students committed fewer crimes. Point estimates suggest the overall Marginal Value of Public Funds was below one, indicating low cost-effectiveness.

Keywords: conditional cash transfer; education; education maintenance allowance (search for similar items in EconPapers)
JEL-codes: H52 I28 J24 (search for similar items in EconPapers)
Date: 2025-12
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Working Paper: Paying disadvantaged teenagers to stay in school (2025)
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