The Effect of Cash Transfer Programs on Educational Mobility - An Agent Based Approach

23 Pages Posted: 28 Aug 2012 Last revised: 20 May 2015

See all articles by Florian Chávez-Juárez

Florian Chávez-Juárez

Centro de Investigacion y Docencia Economicas

Date Written: March 24, 2015

Abstract

In this paper I develop a model to reproduce the phenomenon of high intergenerational correlations in education particularly observed in Latin American Countries. The model is based on empirical evidence and implemented through agent based modeling techniques. The effect of conditional cash transfer programs on educational mobility is then analyzed. The results suggest that conditional cash transfer program can substantially increase intergenerational mobility in education. I find that using parental education as eligibility criterion and adapting the subsidies to the income level can improve the efficiency of a program in increasing educational mobility as compared to a purely income based program.

Keywords: educational mobility, conditional cash transfer program, agent based modeling, inequality, schooling decision

JEL Classification: C63, D63, H52, I24, I3, J62

Suggested Citation

Wendelspiess Chávez Juárez, Florian, The Effect of Cash Transfer Programs on Educational Mobility - An Agent Based Approach (March 24, 2015). Available at SSRN: https://ssrn.com/abstract=2135499 or http://dx.doi.org/10.2139/ssrn.2135499

Florian Wendelspiess Chávez Juárez (Contact Author)

Centro de Investigacion y Docencia Economicas ( email )

Carretera Mexico-Toluca 3655
Lomas de Santa Fe
Mexico City, 01210
Mexico

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