Publication:
The Medium-Term Effects of Scholarships in a Low-Income Country

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Published
2014-09
ISSN
0022-166X
1548-8004
Date
2022-03-03
Author(s)
Schady, Norbert
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Abstract
Despite progress in recent decades, a substantial fraction of children in developing countries attain little schooling, and many adults lack skills that are valued in the labor market. We evaluate the medium-term effects of a program that provided scholarships for three years to poor children upon graduation from elementary school in Cambodia, a low-income country. To do this we use a sharp regression discontinuity design. We show that scholarships have substantial effects on school attainment. By the time children would have been in grade 11 had they remained in school, two years after they stopped being eligible for scholarships, those who were offered scholarships have attained 0.6 more grades of completed schooling. Nevertheless, we find no evidence that scholarships had significant effects on test scores, employment, earnings, or the probability of getting married or having a child in adolescence.
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    Getting Girls into School : Evidence from a Scholarship Program in Cambodia
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    Increasing the schooling attainment of girls is a challenge in much of the developing world. The authors evaluate the impact of a program that gives scholarships to girls making the transition between the last year of primary school and the first year of secondary school in Cambodia. They show that the scholarship program had a large, positive effect on the school enrollment and attendance of girls. Their preferred set of estimates suggests program effects on enrollment and attendance at program schools of 30 to 43 percentage points. Scholarship recipients were also more likely to be enrolled at any scchool (not just program schools) by a margin of 22 to 33 percentage points. The impact of the Japan Fund for Poverty Reduction (JFPR) program appears to have been largest among girls with the lowest socioeconomic status at baseline. The results are robust to a variety of controls for observable differences between scholarship recipients and nonrecipients, to unobserved heterogeneity across girls, and to selective attrition out of the sample.
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    There is increasing evidence that conditional cash transfer programs can have large impacts on school enrollment, including in very poor countries. However, little is known about which features of program design -- including the amount of the cash that is transferred, how frequently conditions are monitored, whether non-complying households are penalized, and the identity or gender of the cash recipients -- account for the observed outcomes. This paper analyzes the impact of one feature of program design -- namely, the magnitude of the transfer. The analysis uses data from a program in Cambodia that deliberately altered the transfer amounts received by otherwise comparable households. The findings show clear evidence of diminishing marginal returns to transfer size despite the fact that even the larger transfers represented on average only 3 percent of the consumption of the median recipient households. If applicable to other settings, these results have important implications for other programs that transfer cash with the explicit aim of increasing school enrollment levels in developing countries.
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    Increasing the schooling attainment of girls is a challenge in much of the developing world. In this study, we evaluate the impact of a program that gives scholarships to girls making the transition between the last year of primary school and the first year of secondary school in Cambodia. We show that the scholarship program increased the enrollment and attendance of recipients at program schools by about 30 percentage points. Larger impacts are found among girls with the lowest socioeconomic status at baseline. The results are robust to a variety of controls for observable differences between scholarship recipients and nonrecipients, to unobserved heterogeneity across girls, and to selective transfers between program schools and other schools. We conclude that there is substantial potential for demand-side interventions in lower-income countries like Cambodia.

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