High-School Track Choice and Financial Constraints: Evidence From Urban Mexico

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dc.description.abstract This paper exploits the discontinuity in the assignment of the welfare program Oportunidades in order to explore whether and how a household income shock affects low-income students’ revealed preferences over high-school tracks. In the context of the centralized school assignment system in Mexico City, we find that cash transfers increase the probability of choosing the vocational track vis-a-vis the other more academic-oriented tracks by roughly 6 percentage points out of a baseline rate of 9.2 percentage points. Different pieces of evidence are consistent with the hypothesis that Oportunidades relaxes the financial constraints that prevent relatively low-ability students from choosing the schooling option with higher average labor market returns. As a result of the income shock, students with tighter financial constraints are more likely to be assigned to their preferred schooling option and to complete high-school. en
dc.title High-School Track Choice and Financial Constraints: Evidence From Urban Mexico en
dc.contributor.author Avitabile, Ciro
dc.contributor.author Bobba, Matteo
dc.contributor.author Pariguana, Marco
dc.date.accessioned 2015-10-15T01:41:07Z
dc.date.available 2015-10-15T01:41:07Z
dc.date.issued 2015-10-15
dc.identifier.uri http://hdl.handle.net/123456789/53071
lacea.language.supported en
dc.description Working paper
dc.language.iso en
dc.subject School Choice
dc.subject Tracking
dc.subject Financial Constraints
dc.subject Vocational Education
dc.subject Returns to Education
dc.subject Regression Discontinuity Design
dc.type Working Paper

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