Low levels of learning outcomes persist among schoolchildren in low- and middle-income countries, despite the focus on increased access to education. This study examines the impact of two government incentives—scholarships and free tuition—on the educational outcomes of children aged 8–11 years in India using the nationally representative dataset, India Human and Development Survey-2 (IHDS 2). To estimate the effect of government incentives on children’s learning outcomes, we use propensity score weighting, with the treatment being free tuition and scholarships. Our findings indicate that scholarships are negatively associated with learning outcomes, particularly in writing and math. However, these effects are not statistically significant when controlling for socio-economic and school-related factors. Similarly, free tuition is linked to lower learning outcomes, and the negative effects increase after accounting for control variables and could reflect pre-existing deprivations or learning gaps that remain to be addressed. These findings highlight the mixed impacts of government incentives on education outcomes in India. The study also emphasises the importance of socio-economic factors and school characteristics in shaping learning outcomes, highlighting the need for a multifaceted approach when evaluating the effectiveness of government incentives.
AfoakwahC., & KoomsonI. (2021). How does school travel time impact children’s learning outcomes in a developing country?Review of Economics of the Household, 19, 1077–1097.
2.
ApergisN., PolemisM., & SoursouS.-E. (2022). Energy poverty and education: Fresh evidence from a panel of developing countries. Energy Economics, 106,105430.
3.
ASER. (2014). Annual status of education report (rural). https://img.asercentre.org/docs/Publications/ASER%20Reports/ASER%202014/fullaser2014mainreport_1.pdf
4.
AzevedoJ. P. W. de., CrawfordM. F., NayarR., RogersF. H., RodriguezB., RebecaM., DingE.YiZ., BernalG., DixonM., ChanduviA. S., JaimeA. D., OmarS. (2019). Ending learning poverty: What will it take? (Working Paper No. 142659). Washington, D.C.: World Bank Group. http://documents.worldbank.org/curated/en/395151571251399043/Ending-Learning-Poverty-What-Will-It-Take
5.
BanerjeeR., MishraV., & MarutaA. A. (2021). Energy poverty, health and education outcomes: Evidence from the developing world. Energy Economics, 101,105447.
6.
Barrera-OsorioF., de BarrosA., & FilmerD. (2018). Long-term impacts of alternative approaches to increase schooling: Evidence from a scholarship program in Cambodia. World Bank policy research working paper no. 8566.
7.
Barrera-OsorioF., & FilmerD. (2013). Incentivizing schooling for learning: Evidence on the impact of alternative targeting approaches. World Bank.
8.
Barrera-OsorioF., LindenL. L., & UrquiolaM. (2007). The effects of user fee reductions on enrollment: Evidence from a quasi-experiment. Columbia University.
9.
BehrmanJ. R., ParkerS. W., ToddP. E., and WolpinK. I. (2012). Aligning learning incentives of students and teachers: Results from a social experiment in Mexican high schools. PIER working paper no. 13-004. https://ssrn.com/abstract=2206883 or http://dx.doi.org/10.2139/ssrn.2206883
10.
BentaouetR. K. (2006). Implementation of free basic education policy. Technical report 7. World Bank, Washington, DC.
11.
BhalotraS., HarttgenK., & KlasenS. (2014). The impact of school fees on educational attainment and the intergenerational transmission of education. Background paper prepared for the Education for All Global Monitoring Report 2013/4, UNESCO.
12.
BhandariO. (2006). Socio-economic impacts of rural electrification in Bhutan. https://ssrn.com/abstract=1310056orhttp://dx.doi.org/10.2139/ssrn.1310056
13.
BinderM., GandertonP., & HutchensK. (2002). Incentive effects of New Mexico’s merit-based state scholarship program: Who responds and how?Who Should We Help, 41–56.
14.
CameronL. (2009). Can a public scholarship program successfully reduce school drop-outs in a time of economic crisis? Evidence from Indonesia. Economics of Education Review, 28(3), 308–317.
15.
CheungM., MadestamA., & SvenssonJ. (2011). Who benefits from reduced cost of education? Evidence from a policy experiment in Cambodia. IIES, Stockholm University.
16.
Commission on Social Determinants of Health. (2008). Closing the gap in a generation: Health equity through action on the social determinants of health. Final report of the commission on social determinants of health. World Health Organization, Geneva.
17.
CornwellC. M., LeeK., & MustardD. (2003). The effects of merit-based financial aid on course enrollment, withdrawal and completion in college. Available at SSRN: https://ssrn.com/abstract=434543orhttp://dx.doi.org/10.2139/ssrn.434543
18.
DeciE. L. (1971). Effects of externally mediated rewards on intrinsic motivation. Journal of Personality and Social Psychology, 18(1), 105–115.
19.
De HoyosR., AttanasioO., & MeghirC. (2024). Targeting high school scholarships to the poor: The impact of a program in Mexico. Economic Development and Cultural Change, 72(4),1747–1768.
20.
DeiningerK. (2003). Does cost of schooling affect enrollment by the poor? Universal primary education in Uganda. Economics of Education Review, 22, 291–305.
21.
DesaiS., DubeyA., VannemanR., & BanerjiR. (2008). Private schooling in India: A new educational landscape. India Policy Forum, 5(1), 1–58.
22.
DienerE. (2000). Subjective well-being. American Psychologist, 55, 34–43.
23.
Else-QuestN. M., HydeJ. S., & LinnM. C. (2010). Cross-national patterns of gender differences in mathematics: A meta-analysis. Psychological Bulletin, 136, 103–127.
24.
FafchampsM., & MintenB. (2007). Public service provision, user fees and political turmoil. Journal of African Economies, 16(3), 485–518.
25.
FilmerD., & SchadyN. (2014). The medium-term effects of scholarships in a low-income country. Journal of Human Resources, 49(3), 663–694.
26.
GarlickR. (2013). How price sensitive is primary and secondary school enrolment? Evidence from nationwide tuition fee reforms in South Africa. Technical report, World Bank.
27.
GebruB. & BezuS. (2014). Environmental resource collection: Implications for children’s schooling in Tigray, northern Ethiopia. Environment and Development. Economics, 19(2), 182–200.
28.
GroganL. (2008). Universal primary education and school entry in Uganda. Journal of African Economies, 18, 83–211.
29.
Growth and Jobs: Overview. (2024, October). World Bank. https://www.worldbank.org/en/topic/jobsanddevelopment/overview
30.
HunsakerS., BaumD. R., & DucosK. (2022). Reducing the constraints to school access and progress: Assessing the effects of a scholarship program in rural Malawi. International Journal of Comparative Education and Development, 24(2), 86–100.
31.
HydeJ. S., FennemaE., RyanM., FrostL. A., & HoppC. (1990). Gender comparisons of mathematics attitudes and affect: A meta-analysis. Psychology of Women Quarterly, 14, 299–324.
32.
Hyll-LarsenP. (2013). Free or fee: Corruption in primary school admissions. In Transparency International (Ed.), Global corruption report: Education (pp. 52–59). Routledge.
33.
KabeerN. (2000). Social exclusion, poverty and discrimination; Towards an analytical framework. IDS Bulletin, 31(4), 83–97.
34.
KattanR., & BurnettN. (2004). User fees in primary education. World Bank Education Advisory Service.
35.
KremerM., MiguelE., & ThorntonR. (2009). Incentives to learn. The Review of Economics and Statistics, 91, 437–456.
36.
KruglanskiA., FriedmanI., & ZeeviG. (1971). The effect of extrinsic incentives on some qualitative aspects of task performance. Journal of Personality and Social Psychology, 39(4), 606–617.
37.
LeeJ. (2008). Sibling size and investment in children’s education: An Asian instrument. Journal of Population Economics, 21, 855–875.
38.
LepperM., GreeneD., & NisbettR. (1973). Undermining children’s interest with extrinsic rewards: A test of the ‘overidentification’ hypothesis. Journal of Personality and Social Psychology, 28(1), 129–137.
39.
LiuC., YiH., LuoR., BaiY., ZhangL., ShiY., WangH., ChuJ., & RozelleS. (2013). The effect of early commitment of financial aid on matriculation to senior high school among poor junior high students in rural China. Technical report, Rural Education Action Project (REAP), Stanford, CA.
40.
NankhuniF. J., & FindeisJ. L. (2004). Natural resource-collection work and children’s schooling in Malawi. Agricultural Economics, 31, 123–134.
41.
NkosiC. S. (2011). The implications of being declared a no fee school. PhD thesis, The Faculty of Education, University of Pretoria.
42.
OdokA. D. (2013). Contemporary family structures and students’ academic performance in secondary schools in lkom Local Government Area, Cross River State. Journal of Sociology, 4(4), 87–94.
43.
OECD. (2004). Learning for tomorrow’s world: First results from PISA 2003. Paris, France.
44.
OrfieldG. (2002). Foreword. In HellerD. E. & MarinP. (Eds.), Who should we help? The negative social consequences of merit aid scholarships. The Civil Rights Project, Harvard University. https://files.eric.ed.gov/fulltext/ED489183.pdf
45.
Ortiz-CorreaJ. S., FilhoM. A. R., & DinarA. (2016). Impact of access to water and sanitation services on educational attainment. Water Resources and Economics, 14, 31–43.
46.
O’BrienJ., DoP., & EdelsonM. (2021). The effects of fuelwood on children’s schooling in rural Vietnam. Journal of Asian Economics, 72, 101266.
47.
PekrunR., GoetzT., TitzW., & PerryR. P. (2002). Academic emotions in students’ self-regulated learning and achievement: A program of qualitative and quantitative research. Educational Psychologist, 37, 91–105.
48.
PetrosinoA., MorganC., FroniusT. A., Tanner-SmithE. E., & BoruchR. F. (2012). Interventions in developing nations for improving primary and secondary school enrolment of children: A systematic review. Campbell Systematic Reviews, 19(1), 1.
49.
PortelaM. O., & PellsK. (2015). Corporal punishment in schools: Longitudinal evidence from Ethiopia, India, Peru and Viet Nam. Innocenti Discussion Paper No. 2015-02, UNICEF Office of Research, Florence.
50.
Pratham. (2022). Annual status of education report (rural). ASER.
51.
PritchettL. (2013). The rebirth of education: Schooling ain’t learning. Center for Global Development, Washington, DC.
52.
RamachandranV., & NaoremT. (2013). What it means to be a dalit or tribal child in our schools: A synthesis of a six-state qualitative study. Economic and Political Weekly, 48(4), 43–52.
53.
ReardonS. F. (2011). The widening academic achievement gap between the rich and the poor: New evidence and possible explanations. In DuncanG. J. & MurnaneR. M (Eds.), Whither opportunity? Rising inequality, schools, and children’s life chances, (pp. 91–116). Russell Sage Foundation.
54.
ReddyA., & SinhaS. (2010). School dropouts or pushouts? Overcoming barriers for the right to education. Research Monograph 40, CREATE Pathways to Access.
55.
RobinsonJ. P. (2011). A global compact on learning: Taking action on education in developing countries. Center for Universal Education at Brookings, Washington, DC.
56.
SirinS. R. (2005). Socioeconomic status and academic achievement: A meta-analytic review of research. Review of Educational Research, 75, 417–453.
57.
SrivastavaP., & NoronhaC. (2016). The myth of free and barrier-free access: India’s Right to Education Act—private schooling costs and household experiences. Oxford Review of Education, 42(5), 561–578.
58.
StromquistN. (2017). The learning generation: Investing in education for a changing world. A report by the international commission on financing global education opportunity. Comparative Education Review, 61(1), 214–217.
59.
SubrahmanianR. (2003). Exploring processes of marginalisation and inclusion in education. IDS Bulletin, 34(1), 1–8. https://doi.org/10.1111/j.1759-5436.2003.tb00053.x
60.
TomanM. T., & JemelkovaB. (2003). Energy and economic development: an assessment of the state of knowledge. Energy Journal, 24, 4–5.
61.
UNESCO. (2014). Education for All Global Monitoring Report 2014: Teaching and learning: Achieving quality for all.
62.
UNESCO. (2015a). Pricing the right to education: The cost of reaching new targets by 2030. GEM Report Policy Paper 18.
63.
UNESCO. (2015b). Education for All 2000–2015: Achievements and challenges.
64.
UNESCO Institute for Statistics. (2017). More than one-half of children and adolescents are not learning worldwide. UIS Fact Sheet No. 6. fs46-more-than-half-children-not-learning-en-2017.pdf
65.
UNICEF. (2019). Every child learns: UNICEF education strategy 2019–2030. Technical Report, United Nations Children’s Fund.
66.
World Bank. (2011). Learning for all: Investing in people’s knowledge and skills to promote development. World Bank Group Education Strategy 2020. World Bank, Washington, DC.
67.
World Bank Group & Independent Evaluation Group. (2008). The Welfare Impact of Rural Electrification: A Reassessment of the Costs and BenefitsAn IEG Impact Evaluation. World Bank Group.
68.
YiH., SongY., LiuC., HuangX., ZhangL., BaiY., RenB., SuiY., LoyalkaP., ChuJ., & RozelleS. (2015). Giving kids a head start: The impact and mechanisms of early commitment of financial aid on poor students in rural China. Journal of Development Economics, 113, 1–15.
69.
ZeidnerM. (1998). Test anxiety: The state of the art. Plenum Press.
