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A cost-effectiveness analysis of demand- and supply-side education interventions

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  • Coady, David P.
  • Parker, Susan W.

Abstract

This paper is concerned with the issue of the most cost-effective way of improving access to education for poor households in developing countries. We consider two alternatives: (1) extensive expansion of the school system (i.e., bringing education to the poor) and (2) subsidizing investment in education by the poor (i.e., bringing the poor to the education system). To this end, we evaluate the Programa Nacional de Educación, Salud y Alimentación (PROGRESA), a large poverty alleviation program recently introduced in Mexico that subsidizes education. Using double-difference regression estimators on data collected before and after the program for randomly selected control and treatment households, we estimate the relative impacts of the demand- and supply-side program components. Combining these estimates with cost information, we find that the demand-side subsidies are substantially more cost-effective than supply-side expansions.

Suggested Citation

  • Coady, David P. & Parker, Susan W., 2002. "A cost-effectiveness analysis of demand- and supply-side education interventions," FCND briefs 127, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:fcndbr:127
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    3. Antonopoulos, Rania., 2009. "The unpaid care work : paid work connection," ILO Working Papers 994274043402676, International Labour Organization.
    4. Stefan Mann, 2006. "Merit goods in a utilitarian framework," Review of Political Economy, Taylor & Francis Journals, vol. 18(4), pages 509-520.
    5. Glick, Peter, 2008. "What Policies will Reduce Gender Schooling Gaps in Developing Countries: Evidence and Interpretation," World Development, Elsevier, vol. 36(9), pages 1623-1646, September.
    6. Raymond, Melanie & Sadoulet, Elisabeth, 2003. "Educational Grants Closing the Gap in Schooling Attainment between Poor and Non-Poor," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt60r0x8j4, Department of Agricultural & Resource Economics, UC Berkeley.
    7. Amanda Glassman & Jessica Todd, 2007. "Performance-Based Incentives for Health: Conditional Cash Transfer Programs in Latin America and the Caribbean," Working Papers 120, Center for Global Development.
    8. Seiro ITO, 2006. "Raising Educational Attainment Of The Poor: Policies And Issues," The Developing Economies, Institute of Developing Economies, vol. 44(4), pages 500-531, December.
    9. Raymond, Melanie & Sadoulet, Elisabeth, 2003. "Educational Grants Closing the Gap in Schooling Attainment between Poor and Non-Poor," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt60r0x8j4, Department of Agricultural & Resource Economics, UC Berkeley.
    10. World Bank & Observatoire National de la Pauvreté et de l’Exclusion Sociale, 2014. "Investing in People to Fight Poverty in Haiti : Reflections for Evidence-based Policy Making [Haïti - Investir dans l’humain pour combattre la pauvreté : Éléments de réflexions pour la prise de déc," World Bank Publications - Reports 21519, The World Bank Group.

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