Do Poverty Reduction Programmes Foster Education Expenditure? New Evidence from Rwanda

Abstract

The Rwandan Government has implemented various education policies that contribute to higher enrolment in education, but has become aware that these policies might be less effective for children from poor families. This study investigates the contribution of poverty reduction programmes on education expenditure of households. Using a multi-level regression analysis, combining district data on labour markets with detailed expenditure data on 7,230 households, it teases out the effects of several social protection programmes. The results show that access to health insurance and to waged work are positively related, while direct financial or in kind support are negatively related to paying into the children’s schooling. Non-agricultural employment opportunities in particular seem to stimulate education investments. Reducing the vulnerability of households might provide more equal access to these opportunities.