Using administrative data from the urban Mexican Oportunidades program, this paper analyzes why poor households choose less education for their children, even when offered financial compensation for school attendance. Each school year, half of recipients forgo income for which they are eligible...

This paper identifies a new reason for giving preferences to the disadvantaged using a model of contests. There are two forces at work: the effort effect working against giving preferences and the selection effect working for them. When education is costly and easy to obtain (as in the U.S.),...

When parents in Senegal decide upon primary school enrollment of their children, they might consider future returns to education. These future benefits in turn heavily depend on a child’s prospects to attend secondary school. If private returns to primary schooling are very low and secondary...