Can provision of free school uniforms harm attendance? Evidence from Ecuador

Abstract

To raise school participation, many programs in developing countries eliminate or reduce private contributions to education. Using data from a randomized experiment in Ecuador, we ironically find that announcing a free school uniform program had a negative impact on attendance. The school uniforms were distributed in only 63% of the schools that were told that they would get them, thus this negative impact could have been generated by creating false expectations of free distribution, or also by a sunk cost effect on those who did actually receive the uniforms. © 2012 Elsevier B.V.