High School Track Choice and Financial Constraints:Evidence from Urban Mexico

Avitabile, Ciro, Bobba, Matteo and Pariguana, Marco (2017) High School Track Choice and Financial Constraints:Evidence from Urban Mexico. TSE Working Paper, n. 16-661, Toulouse

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Official URL: http://tse-fr.eu/pub/30495

Abstract

We study how a large household windfall affects sorting of relatively disadvantaged youth over high school tracks by exploiting the discontinuity in the assignment of a welfare program in Mexico. The in-cash transfer is found to significantly increase the probability of selecting vocational schools as the most preferred options vis-a-vis other more academically oriented education modalities. We find support for the hypothe- sis that the receipt of unearned income allows some students to choose a schooling career with higher out-of-pocket expenditures and higher expected returns. The ob- served change in stated preferences across tracks effectively alters school placement, and bears a positive effect on later education outcomes.

Item Type: Monograph (Working Paper)
Language: English
Date: May 2017
Place of Publication: Toulouse
Uncontrolled Keywords: school choice, tracking, financial constraints, vocational education, returns to education, regression discontinuity design
JEL codes: D83 - Search; Learning; Information and Knowledge; Communication; Belief
I21 - Analysis of Education
J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 02 Jun 2016 09:19
Last Modified: 07 Mar 2018 13:23
OAI ID: oai:tse-fr.eu:30495
URI: http://publications.ut-capitole.fr/id/eprint/22053

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