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Short-term impacts of an unconditional cash transfer program on child schooling: Experimental evidence from Malawi

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  • Kilburn, Kelly
  • Handa, Sudhanshu
  • Angeles, Gustavo
  • Mvula, Peter
  • Tsoka, Maxton

Abstract

This study analyzes the impact of a positive income shock on child schooling outcomes using experimental data from an unconditional cash transfer program in Malawi. Since households receive the cash and parents are responsible for making spending decisions, we also examine the intervening pathways between cash transfers and child schooling. Data comes from a cluster-randomized study of Malawi's Social Cash Transfer Program (SCTP). After a baseline survey, households in village clusters were randomly assigned to treatment and control arms with treatment villages receiving transfers immediately and control villages assigned a later entry. We test for treatment impacts on a panel of school-aged children (6–17) using a differences-in-differences model. After a years’ worth of transfers, we find the Malawi SCTP both improves enrollment rates and decreases dropouts. The main intervening pathway between the program and schooling is education expenditures, suggesting that the cash improves the demand for education by reducing financial constraints.

Suggested Citation

  • Kilburn, Kelly & Handa, Sudhanshu & Angeles, Gustavo & Mvula, Peter & Tsoka, Maxton, 2017. "Short-term impacts of an unconditional cash transfer program on child schooling: Experimental evidence from Malawi," Economics of Education Review, Elsevier, vol. 59(C), pages 63-80.
    • Handle: RePEc:eee:ecoedu:v:59:y:2017:i:c:p:63-80
    DOI: 10.1016/j.econedurev.2017.06.002
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    4. Martina Jakob & Benita Combet, 2020. "Educational aspirations and decision-making in a context of poverty. A test of rational choice models in El Salvador," University of Bern Social Sciences Working Papers 33, University of Bern, Department of Social Sciences, revised 01 Aug 2020.
    5. Yesim Tozan & Sicong Sun & Ariadna Capasso & Julia Shu-Huah Wang & Torsten B Neilands & Ozge Sensoy Bahar & Christopher Damulira & Fred M Ssewamala, 2019. "Evaluation of a savings-led family-based economic empowerment intervention for AIDS-affected adolescents in Uganda: A four-year follow-up on efficacy and cost-effectiveness," PLOS ONE, Public Library of Science, vol. 14(12), pages 1-13, December.
    6. Zietz, Susannah & de Hoop, Jacobus & Handa, Sudhanshu, 2018. "The role of productive activities in the lives of adolescents: Photovoice evidence from Malawi," Children and Youth Services Review, Elsevier, vol. 86(C), pages 246-255.
    7. David K. Evans & Amina Mendez Acosta, 2020. "Education in Africa: What Are We Learning?," Working Papers 542, Center for Global Development.
    8. Chong, Zhi Zheng & Lau, Siew Yee, 2023. "A Systematic Review and Meta-Analysis of the Educational Effects of Unconditional Cash Transfers," MPRA Paper 113587, University Library of Munich, Germany.
    9. Hizkia H. D. Tasik, 2019. "A Tale of Income and Energy in Rural Areas: What Contributes to People s Happiness? Evidence from Eastern Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 248-255.
    10. Sessou, Eric & Henning, Christian H. C. A., 2019. "Cash transfers and school enrolment," Working Papers of Agricultural Policy WP2019-02, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    11. Heaney, Tiarnán, 2024. "From pensions to pupils? Schooling, resource constraints and old age pensions in Ireland 1901-11," QUCEH Working Paper Series 24-09, Queen's University Belfast, Queen's University Centre for Economic History.
    12. Sessou, Fidele Eric & Hidrobo, Melissa & Roy, Shalini & Huybregts, Lieven, 2024. "Educational impacts of an unconditional cash transfer program in Mali," Economics of Education Review, Elsevier, vol. 101(C).
    13. Subedi, Mukti Nath & Rafiq, Shuddhasattwa & Ulker, Aydogan, 2022. "Effects of Affirmative Action on Educational and Labour Market Outcomes: Evidence from Nepal's Reservation Policy," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 443-463.
    14. Jakob, Martina & Combet, Benita, 2020. "Educational aspirations and decision-making in a context of poverty. A test of rational choice models in El Salvador," SocArXiv w9bkq, Center for Open Science.
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    16. Xiaodong Zheng & Shuangyue Shangguan & Zheng Shen & Hualei Yang, 2023. "Social Pensions and Children’s Educational Outcomes: The Case of New Rural Pension Scheme in China," Journal of Family and Economic Issues, Springer, vol. 44(2), pages 502-521, June.

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    More about this item

    Keywords

    Demand for schooling; Cash transfers; Economic development; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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