Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245718 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14667
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Do local labor markets influence the effectiveness of educational policies? To answer this question, we focus on Mexico's conditional cash transfer program, PROGRESA, documented to have increased educational attainment. We show that PROGRESA's impact on schooling was smaller in areas with more export-oriented manufacturing jobs and argue this is because these jobs generate more convex opportunity costs of schooling. Consistent with this, the heterogeneity we document is strongest among those old enough to be working in factory jobs. In addition, this heterogeneity is primarily driven by jobs that directly influence schooling opportunity costs: low-wage jobs and jobs for school-aged workers.
Subjects: 
conditional cash transfers
export manufacturing
Mexico
opportunity costs
JEL: 
I28
F16
I38
O14
Document Type: 
Working Paper

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