This paper reports on a field experiment testing for sunk-cost effects in an education setting. Students signing up for extra-curricular tutorial sessions randomly received a discount on the tuition fee. The sunk-cost effect predicts that students who receive larger discounts will attend fewer...

The impact of school resources on the quality of education in developing countries may depend crucially on whether resources are targeted efficiently. In this paper we use a randomized experiment to analyze the impact of a school grants program in Senegal, which decentralized a portion of the...

Using the first two waves of the Vietnam Living Standards Survey, we investigate how a father’s temporary absence affects children left behind in terms of their school attendance, household expenditures on education, and nonhousework labor supply in the 1990s. The estimating subsample is...

Outside the United States (U.S.), very little is known about long-run trends in school productivity. We present new evidence using two data series from Australia, where comparable tests are available back to the 1960s. For young teenagers (aged 13-14), we find a small but statistically...

Using the first two waves of the Vietnam Living Standards Survey, we investigate how a father’s temporary absence affects children left behind in terms of their school attendance, household expenditures on education, and nonhousework labour supply in the 1990s. The estimating subsample is...

This research shows that moral hazard associated with extant social insurance arrangements causes underinvestment in human capital, because of government’s inability to commit to welfare policies. It then argues that education policies, such as education subsidies or direct public investment...

This paper uses administrative longitudinal micro data on Junior High school students in Uruguay to measure the effect of grade failure on students’ subsequent school outcomes. Exploiting the discontinuity induced by a rule establishing automatic grade failure for pupils with more than three...

This paper presents analysis of the implicit subsidies and repayment hardships of Thailand’s Student Loan Fund (SLF). Comparisons are made between the current SLF with alternative similar schemes, assuming different rates of interest and loan repayment periods. We find that the implicit...

It is well known that higher education financing involves uncertainty and risk with respect to students’ future economic fortunes, and an unwillingness of banks to provide loans because of the absence of collateral. It follows that without government intervention there will be both socially...

This paper illustrates the extent of implicit taxpayer subsidies under four possible income contingent loan (ICL) arrangements for Thailand: TICAL, implemented in 2007 only, a variant of TICAL, and two alternative ICL schemes. The implicit taxpayer subsidy calculated with respect to average...