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Why cash grants fail to raise household investment in child education in developing countries

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  • Jemal Mohammed Adem

Abstract

This study formulates a theoretical framework to shed light on why cash grants fail to increase parental investment in child education, and what can be done to address the issue. The paper asserts that consumption vulnerability, loss aversion, and information friction render lump‐sum cash grants ineffective. Redesigning interventions as demand‐side cost‐sharing schemes would nudge parents to buy educational materials for their children.

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  • Jemal Mohammed Adem, 2024. "Why cash grants fail to raise household investment in child education in developing countries," Review of Development Economics, Wiley Blackwell, vol. 28(3), pages 1063-1076, August.
    • Handle: RePEc:bla:rdevec:v:28:y:2024:i:3:p:1063-1076
    DOI: 10.1111/rode.13092
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