Getting Low-Income Adolescents Back to School: The Returns to Secondary School Equivalency

The option to obtain secondary school equivalency by passing the national exit exam is a common policy in many developing countries and accounts for a large share of the education sector. However, the price for this alternative pathway may be a significant barrier, especially for girls. In addition, despite broad support for the policy, empirical evidence on the return to such secondary school equivalency is lacking. The research team proposes to target low-income, out-of-school young adults, and randomly assign scholarships (i.e., price subsidies) to attend alternative education centers that prepare individuals to pass the Tanzanian secondary school exit exam and obtain their secondary school equivalency. The proposal is designed to answer the following: Does price inhibit demand for secondary school equivalency? What are the returns to secondary school equivalency on continued education, labor market and marital outcomes, and cognitive achievement? Do access and returns differ for girls, thereby reducing gender gaps?