Marginal Willingness to Pay for Education and the Determinants of Enrollment in Mexico
Contributor Name:
Kavita
Variable government effort has significantly more marginal impact on poor than on wealthy populations in Mexico. The authors state that the Mexican government can increase school enrolments by targeting resources towards the poorer income group.
The authors use the marginal willingness to pay analysis to examine the impact of public spending on household behavior in Mexico. They measure the effect of government provision for public schools on household educational spending. They also investigate the link between government policy and household decision-making, and educational expenditure and schooling enrolment. Findings include:
- Non-poor and urban populations get a large share of government subsidy for education;
- Public educational services provide largest subsidy to households with high level of educational expenditure;
- Cost of schooling affects household school enrolment and transition patterns;
- Government effort affects probability of enrolment and transition.