Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74992
Authors: 
Mo, Di
Yi, Hongmei
Zhang, Linxiu
Luo, Renfu
Rozelle, Scott
Brinton, Carl
Year of Publication: 
2011
Series/Report no.: 
LICOS Discussion Paper 283
Abstract: 
Recent anecdotal reports suggest that dropout rates may be higher and actually increasing over time in poor rural areas. There are many reasons not to be surprised that there is a dropout problem, given the fact that China has a high level of poverty among the rural population, a highly competitive education system and rapidly increasing wages for unskilled workers. The overall goal of this study is to examine if there is a dropout problem in rural China and to explore the effectiveness that a Conditional Cash Transfer (CCT) program could have on dropouts (and mechanism by which the CCT might affect drop outs). To meet this objective, we conducted a randomized controlled trial (RCT) of a CCT using a sample of 300 junior high school students in a nationally-designated poor county in Northwest China. Using our data, we found that the annual dropout rate in the study county was high, about 7.0%. We find, however, that a CCT program reduces drop outs by 60%; the dropout rate is 13.3% in the control group and 5.3 % in the treatment group. The program is most effective in the case of girls, younger students and the poorest perfirming students.
Document Type: 
Working Paper

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