The Effect of Cash Transfers to Schools on Voluntary Contributions

Rosangela Bando

No 6678, IDB Publications (Working Papers) from Inter-American Development Bank

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 percent, while parents in poorer schools decreased voluntary contributions by 11 percent. 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 percent 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: Parental investment; School-based management programs; School grants; Voluntary contributions; Mexico; School based matching (search for similar items in EconPapers)
JEL-codes: D1 H5 I2 O2 (search for similar items in EconPapers)
Date: 2014-09
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Related works:
Journal Article: The effect of cash transfers to schools on voluntary contributions (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:6678

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