%0 Report
        %A Avitabile, Ciro
%A Bobba, Matteo
%A Pariguana, Marco
        %T High School Track Choice and Liquidity Constraints: Evidence from Urban Mexico
        %D 2017
        %8 2017 Jan
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 10506
        %U https://www.iza.org/publications/dp10506
        %X We study how a large household windfall affects sorting of relatively disadvantaged youth over high school tracks by exploiting the discontinuity in the assignment of a welfare program in Mexico. The in-cash transfer is found to significantly increase the probability of selecting vocational schools as the most preferred options vis-a-vis other more academically oriented education modalities. We find support for the hypothesis that the transfer relaxes the liquidity constraints preventing relatively poor students from choosing a schooling career with higher out-of-pocket expenditures and higher expected returns. The observed change in stated preferences across tracks effectively alters school placement, and bears a positive effect on on-time graduation.
        %K school choice
%K tracking
%K financial constraints
%K vocational education
%K returns to education
%K regression discontinuity design