Provide incentives to encourage students to continue their education

Provide students with conditional cash transfers based on re-enrollment or completion.

Behavioral Tools: Incentive

Benchmarked Intervention

Experiment Overview

In an IPA intervention to increase continued education and secondary and tertiary school enrollment, conditional cash transfer incentive structures were redesigned.  In the first design: savings treatment, they split the cash transfer amount into a direct payment of US$10 and a ‘savings’ component of US$5 held in a bank account. The accumulated funds were made available to families at the end of the year, just before enrollment for the subsequent grade level. This structure created a mechanism for families to save money for annual enrollment costs. In the second design: tertiary treatment, the monthly subsidy was reduced from US$15 to $10. However, conditional upon graduation, students were entitled to receive a transfer of US$300, equivalent to 73 percent of the average cost of a year at vocational school, if they enrolled within one year.

Impact

Source: https://www.poverty-action.org/study/improving-design-conditional-transfer-programs-evidence-randomized-education-experiment