Credit Constraints and Demand for Remedial Education: Evidence From Tanzania

The authors study how credit constraints affect access to a remedial education program for girls. An unconditional cash transfer was given 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. It concludes that credit constraints limit access to educational programs, and may increase inequality of outcomes.

Authors: Burchardi, Konrad B.; Quidt, Jonathan de; Gulesci, Selim; Sulaiman, Munshi
Type: Discussion Paper
Year: 2021