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Borrowing Constraints and Demand for Remedial Education: Evidence from Tanzania

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  • Konrad Burchardi
  • Jonathan de Quidt
  • Selim Gulesci
  • Munshi Sulaiman

Abstract

We use a cash transfer to relax households’ borrowing constraints, then elicit their willingness to pay for a remedial education programme offering tutoring and life skills training. Lottery losers were willing to pay 3,300 Tanzanian Shillings for the programme, which is 7% of per capita monthly expenditures. For those identified at baseline as able to borrow, willingness to pay increases by 3% upon winning a lottery prize of 3,200 Tanzanian Shillings. For those unable to borrow, willingness to pay increases by 27% upon winning the lottery. We conclude that borrowing constraints limit access to educational programmes, and may increase inequality of educational attainment.

Suggested Citation

  • Konrad Burchardi & Jonathan de Quidt & Selim Gulesci & Munshi Sulaiman, 2024. "Borrowing Constraints and Demand for Remedial Education: Evidence from Tanzania," The Economic Journal, Royal Economic Society, vol. 134(662), pages 2621-2637.
  • Handle: RePEc:oup:econjl:v:134:y:2024:i:662:p:2621-2637.
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    File URL: http://hdl.handle.net/10.1093/ej/ueae024
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    Cited by:

    1. João R. Ferreira & Wayne Aaron Sandholtz & Wayne Sandholtz, 2024. "Sibling Spillovers and Free Schooling," CESifo Working Paper Series 11436, CESifo.

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