Abstract

We provide experimental evidence on the intergenerational impacts of secondary education subsidies in a low-income context, leveraging a randomized controlled trial and 15-year longitudinal follow-up. For young women, receiving a scholarship for secondary school delays childbearing and marriage, and reduces unwanted pregnancies. Female scholarship recipients are more likely to marry a partner with tertiary education and their children have better early childhood development outcomes. In particular, we document a 45% reduction in under-three mortality as well as cognitive development gains of 0.25standard deviations of test scores once children are of school age. The primary mechanism seems to be that more-educated caregivers have the knowledge and skills to safeguard their children’s health and stimulate their cognitive development. In contrast, we find no evidence of a positive impact for the children of male scholarship recipients, who tend to marry less educated partners. Together, these results suggest a key role for maternal education in child outcomes. We also estimate the cost-benefit ratio for secondary school scholarships and find that the impact on child survival alone is sufficient to make them a highly cost-effective investment.