Credit Constraints and Demand for Remedial Education: Evidence from Tanzania

49 Pages Posted: 15 Mar 2021

See all articles by Konrad Burchardi

Konrad Burchardi

Stockholm University - Institute for International Economic Studies (IIES); Stockholm University; Centre for Economic Policy Research (CEPR)

Jonathan de Quidt

Stockholm University - Institute for International Economic Studies (IIES)

Selim Gulesci

Bocconi University - Department of Economics

Munshi Sulaiman

BRAC-Africa

Date Written: March 2021

Abstract

We study how credit constraints affect access to a remedial education program for girls. We gave an unconditional cash transfer to randomly selected households, then measured their Willingness To Pay (WTP) for the program. In the control group average WTP was 3,300 Tanzanian Shillings, seven percent of per-capita monthly expenditures. For those identified at baseline as able to borrow, the cash transfer increases WTP by three percent. For those unable to borrow, the cash transfer increases WTP by 27 percent. We conclude that credit constraints limit access to educational programs, and may increase inequality of outcomes.

JEL Classification: O12, O15

Suggested Citation

Burchardi, Konrad and de Quidt, Jonathan and Gulesci, Selim and Sulaiman, Munshi, Credit Constraints and Demand for Remedial Education: Evidence from Tanzania (March 2021). CEPR Discussion Paper No. DP15862, Available at SSRN: https://ssrn.com/abstract=3805277

Konrad Burchardi (Contact Author)

Stockholm University - Institute for International Economic Studies (IIES) ( email )

Stockholm, SE-10691
Sweden

Stockholm University

Universitetsvägen 10
Stockholm, Stockholm SE-106 91
Sweden

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Jonathan De Quidt

Stockholm University - Institute for International Economic Studies (IIES) ( email )

Stockholm, SE-10691
Sweden

Selim Gulesci

Bocconi University - Department of Economics ( email )

Via Gobbi 5
Milan, 20136
Italy

Munshi Sulaiman

BRAC-Africa ( email )

Liberia

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