SCHOOL SUBSIDIES FOR THE POOR: EVALUATING THE MEXICAN PROGRESA POVERTY PROGRAM

SCHOOL SUBSIDIES FOR THE POOR: EVALUATING THE MEXICAN PROGRESA POVERTY PROGRAM

August 2001 | T. Paul Schultz
This paper evaluates the impact of the Progresa Program on school enrollment in rural Mexico. The program provides education grants to poor mothers, and its effects are analyzed by comparing enrollment rates in communities that received the program with those that did not. The study uses a randomized design to assess the program's impact, and estimates the effect of the program on enrollment using probit models that control for various factors. The results show that the program significantly increased enrollment rates, particularly for girls. The study also estimates the long-term effects of the program on schooling and earnings, suggesting that the program's subsidies on public schooling may have a positive return on investment in terms of increased private earnings. The paper also discusses alternative poverty alleviation programs and their evaluation, as well as the administrative structure of the Progresa program. The study concludes that the Progresa program has had a significant short-run impact on increasing school enrollment rates among children in poor rural households.This paper evaluates the impact of the Progresa Program on school enrollment in rural Mexico. The program provides education grants to poor mothers, and its effects are analyzed by comparing enrollment rates in communities that received the program with those that did not. The study uses a randomized design to assess the program's impact, and estimates the effect of the program on enrollment using probit models that control for various factors. The results show that the program significantly increased enrollment rates, particularly for girls. The study also estimates the long-term effects of the program on schooling and earnings, suggesting that the program's subsidies on public schooling may have a positive return on investment in terms of increased private earnings. The paper also discusses alternative poverty alleviation programs and their evaluation, as well as the administrative structure of the Progresa program. The study concludes that the Progresa program has had a significant short-run impact on increasing school enrollment rates among children in poor rural households.
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