2005
DOI: 10.1920/wp.ifs.2005.0511
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Education subsidies and school drop-out rates

Abstract: This paper evaluates a UK pilot study designed to test whether a means-tested conditional cash transfer paid to 16-to 18-year-olds for staying in full-time education is an effective way of reducing the proportion of school dropouts. The transfer's impact is substantial: in the first year, full-time education participation rates increase by around 4.5 percentage points while the proportion receiving two years of education increases by around 6.7 percentage points. Those receiving the full payment have the large… Show more

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Cited by 34 publications
(25 citation statements)
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“…By using Kernel-based propensity score matching, a multinomial probit and a linear regression model, they estimated the impact of the program on school dropouts. Dearden et al (2005) confirmed that EMA had a positive and significant impact on school participation.…”
Section: Developed Country Studiesmentioning
confidence: 54%
See 1 more Smart Citation
“…By using Kernel-based propensity score matching, a multinomial probit and a linear regression model, they estimated the impact of the program on school dropouts. Dearden et al (2005) confirmed that EMA had a positive and significant impact on school participation.…”
Section: Developed Country Studiesmentioning
confidence: 54%
“…In the United Kingdom, Dearden et al (2005) examined the effect of conditional cash transfer paid to children aged 16-18 in full-time education on school dropouts in the UK in 1999. The Education Maintenance Allowance (EMA) program was targeted at students who completed the last year of compulsory education in Year 11 in summer 1999.…”
Section: Developed Country Studiesmentioning
confidence: 99%
“…Kingdom (Dearden, et al, 2005), a merit award program for girls in Kenya (Kremer et al, 2008), or cash incentives to low-performing schools in Israel for increasing their high-school matriculation certification rate (Angrist and Lavy, 2009) There are two types of financial incentives offered to students: those on inputs and those on outputs. Incentives on outputs are more common in the student incentives literature.…”
Section: Experimental and Quasi-experimental Evaluationsmentioning
confidence: 99%
“…While some studies using a quasi-experimental approach find beneficial effects of financial rewards on academic performance (Ashworth et al, 2001;Dearden, et al, 2005;andDynarski, 2003 and, others find that scholarships lead students to get better grades but to take less ambitious course loads (Binder, et al, 2002;Cornwell et al, 2005;Cornwell et al, 2006). Similarly, Angrist et al, 2002, andAngrist et al, 2006, have also found that vouchers for private secondary school students conditional on their maintaining a satisfactory level of academic performance led to academic gains, one possible channel being the incentives associated with conditional renewal of scholarships.…”
Section: Experimental and Quasi-experimental Evaluationsmentioning
confidence: 99%
“…All evaluations of the EMA have found positive effects on participation and retention in education, and the most recent research also suggests positive effects on achievement (Chowdry et al, 2008 andAitken et al, 2007). Moreover, the evidence suggests that the policy is to a large extent displacing individuals from unproductive activities, and it is cost effective, despite its significant expense (Dearden et al, 2006).…”
Section: Box 1 Raising Education Participation: Coercion or Compulsion?mentioning
confidence: 99%