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Title:Social interactions and schooling decisions PDF Logo
Authors:Lalive, Rafael
Cattaneo, Maria Alejandra
Issue Date:2006
Series/Report no.:CESifo working paper 1787
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. Identification is based on a randomized intervention that grants a cash subsidy encouraging school attendance 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 in parents’ perception of their children’s ability.
JEL:C93
I21
I28
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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