High School Track Choice and Financial Constraints : Evidence from Urban Mexico
Parents and students from different socioeconomic backgrounds value differently school characteristics, but the reasons behind this preference heterogeneity are not well understood. In the context of the centralized school assignment system in Mexi...
Main Authors: | , , |
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Format: | Working Paper |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2015
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2015/09/25094718/high-school-track-choice-financial-constraints-evidence-urban-mexico http://hdl.handle.net/10986/22850 |
Summary: | Parents and students from different
socioeconomic backgrounds value differently school
characteristics, but the reasons behind this preference
heterogeneity are not well understood. In the context of the
centralized school assignment system in Mexico City, this
study analyzes how a large household income shock affects
choices over high school tracks exploiting the discontinuity
in the assignment of the welfare program Oportunidades. The
income shock significantly increases the probability of
choosing the vocational track vis-a-vis the other more
academic-oriented tracks. The findings suggest that the
transfer relaxes the financial constraints that prevent
relatively low-ability students from choosing the schooling
option with higher labor market returns. |
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