Schooling responses to income changes: Evidence from unconditional cash transfers in Rwanda

Abstract

This paper explores the short and medium term impacts of unconditional cash transfers on school-related choices for children of beneficiary households in Rwanda. We draw on an independent evaluation of the Concern Worldwide Graduation Programme, which supported beneficiaries with monthly cash transfers and livelihood training. Our study finds that the programme enabled poor households to overcome income constraints and, consequently, allowed them to make investments in education. However, since school attendance already exceeded 80 percent at baseline due to the government’s focus on universal access to basic education, the programme was unable to induce additional educational access. Thus, for children who remain out of school, income effects and policy efforts were found to be ineffective.