Summary by Mara Estes, Research Assistant, TSEDEQ
October 2005
Progressing through PROGRESA: An Impact Assessment of a School Subsidy Experiment in Rural Mexico. Behrman, Jere R.; Sengupta, Piyali; Todd, Petra. Economic Development & Cultural Change, 54:1, 237-275
Can educational incentives, such as PROGRESA, have a lasting effect on the schooling of children in rural Mexico?
Encouraging education and development of youth is an effective way for developing countries to progress. PROGRESA, an educational and nutritional initiative started in Mexico in 1997, awards families who are dedicated to keeping their kids in school and gives them incentives to encourage their children to attend school. The amount given to each family is relative to their income, and averages about fifty US dollars. This amount is approximately one fifth of the average family income in Mexico. This study examines the effects of the program on the students and communities that have received aid from PROGRESA. It also explores the possibilities of a spillover effect to other children in the community who do not participate in PROGRESA, as well as the potential long-term effects the program could provide. Furthermore, they examine how PROGRESA affects school enrollment, dropout rates, and grade repetition, and the factors that play into these areas such as gender and grade level.
During the time period in which this study was conducted, between 1997 and 1999, over 2.6 million poor families benefited from this program. This number reflects 40% of the rural family population, and 10% of the overall family population in Mexico. For this study, 506 rural families were randomly chosen to participate. This number comprises both the control group as well as the families who have taken part in PROGRESA. 126 of the families constituted the control group and 320 were participants in the program.
After studying the patterns of children within the school system, the authors discovered that girl progress quicker than boys, and the boys are more likely to stay back a year. However, girls are less likely to reenter to school after dropping out as compared to boys. The average grade level at which kids dropout is during the movement from primary school to secondary school. The program greatly improves enrollment rates, reentry of dropouts, progressions of grades, as well as fewer grade repetitions and less dropouts. The study has shown that children who live in the same communities and attend the same school as students who participate in PROGRESA do not benefit from a "spillover affect, " thus receiving no benefits that PROGRESA has created for participating families. The control group has shown how helpful the program has been for students who have participated in PROGRESA compared to those students who have not.
In reflection of a simulation method of assessing long-term impacts, the authors have found the benefits of a permanent PROGRESA program to be highly worthwhile. They predict that it would a cause 21% increase in students enrolled in secondary school, and 0.7 more years of education. Overall PROGRESA has been proven an influential way to encourage children to complete schooling and continue their education. The incentives provided to the families have shown to be worthwhile and effective. This program has made a difference in the lives of many rural Mexican families, and has the potential to boost the overall development of Mexico. It is a program worth continuing and encouraging, as well as initiating in other parts of the world.
The program is productive and can transform a community through education. One of the main reasons children drop out or do not enter school is to provide extra money for the family. With this program, PROGRESA offsets the need for children to work, and allows them the opportunity to become educated. Program participation is associated with higher enrollment rates, less grade repetition, better grade progression, lower dropout rates, and higher school reentry rates among dropouts.In the long run this education will be more beneficial than if the child had dropped out to work. The benefit/cost ratio to the government is at least 1.6.This program proves the effectiveness of incentives to the families as well as the need to respond to specific gender and age issues. PROGRESA is a program that should be encouraged within the Mexican communities, as well as model for other areas to follow. If the benefits of PROGRESA are allowed to continue and are embraced by other countries, the enrollment of children in school could be transformed.