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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title Social Interactions and Schooling Decisions
Organization Unit
Authors
  • Rafael Lalive
  • Alejandra Cattaneo
Language
  • English
Institution University of Zurich
Series Name Working paper series / Institute for Empirical Research in Economics
Number No. 298
ISSN 1424-0459
Date 2006
Abstract Text 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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