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Social Interactions and Schooling Decisions


Lalive, Rafael; Cattaneo, Alejandra (2006). Social Interactions and Schooling Decisions. Working paper series / Institute for Empirical Research in Economics No. 298, University of Zurich.

Abstract

The aim of this paper is to study whether schooling choices are affected by social interactions. Such social interactions may be important because children enjoy spending time with other children or parents learn from other parents about the ability of their children. Identificationnis based on a randomized intervention that grants a cash subsidy encouraging schoolnattendance among a sub-group of eligible children within small rural villages in Mexico. Results indicate that (i) the eligible children tend to attend school more frequently, (ii) but also the ineligible children acquire more schooling when the subsidy is introduced in their local village, (iii) social interactions are economically important, and (iv) they may arise due to changes innparents’ perception of their children’s ability.

Abstract

The aim of this paper is to study whether schooling choices are affected by social interactions. Such social interactions may be important because children enjoy spending time with other children or parents learn from other parents about the ability of their children. Identificationnis based on a randomized intervention that grants a cash subsidy encouraging schoolnattendance among a sub-group of eligible children within small rural villages in Mexico. Results indicate that (i) the eligible children tend to attend school more frequently, (ii) but also the ineligible children acquire more schooling when the subsidy is introduced in their local village, (iii) social interactions are economically important, and (iv) they may arise due to changes innparents’ perception of their children’s ability.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Institute for Empirical Research in Economics (former)
Dewey Decimal Classification:330 Economics
Language:English
Date:August 2006
Deposited On:29 Nov 2011 22:47
Last Modified:12 Aug 2017 13:02
Series Name:Working paper series / Institute for Empirical Research in Economics
ISSN:1424-0459
Official URL:http://www.econ.uzh.ch/wp.html

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