Do supply-side-oriented and demand-side-oriented educational interventions generate synergies?

Abstract

Mexico's Compensatory education programs provide extra resources to primary schools that enroll students in highly disadvantaged rural communities, thus increasing the supply of education.By reducing the price of schooling through school stipends conditional on school attendance and performance, Oportunidades is increasing the demand for schooling amongst its eligible beneficiary households.This study exploits the different phasing-in over time and space across these interventions to test their degree of complementarity (or substitutability).We focus on the effects on intermediate school quality indicators (failure, repetition and dropout) of teacher training, provision of supplies, and empowerment and financing of parent associations -on the supply side; and conditional on attendance cash transfers -on the demand side.Difference-in-difference estimates prove reducing the opportunity cost of schooling and decentralizing school management at the lower level as effective measures in improving educational outcomes.No robust evidence of synergies between the two interventions is found.