Working Paper: CEPR ID: DP3827
Authors: Joshua Angrist; Victor Lavy
Abstract: In Israel, as in many other countries, a high school matriculation certificate is required by universities and some jobs. In spite of the certificate?s value, Israeli society is marked by vast differences in matriculation rates by region and socioeconomic status. We attempted to increase the likelihood of matriculation among low-achieving students by offering substantial cash incentives in two demonstration programs. As a theoretical matter, cash incentives may be helpful if low-achieving students reduce investment in schooling because of high discount rates, part-time work, or face peer pressure not to study. A small pilot programme selected individual students within schools for treatment, with treatment status determined by previous test scores and a partially randomized cut-off for low socioeconomic status. In a larger follow-up programme, entire schools were randomly selected for treatment and the program operated with the cooperation of principals and teachers. The results suggest the Achievement Awards program that randomized treatment at the school level raised matriculation rates, while the student-based program did not.
Keywords: achievement awards; randomized trials; school matriculation
JEL Codes: I21; I28; J13; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| School culture and support (I24) | Student performance (D29) |
| School-level achievement awards program (I24) | Matriculation rates (I23) |
| Student-based program (I23) | Achievement or matriculation rates (I23) |