Performance-Contingent Voucher Renewal Incentives
RCTReview
Educational voucher programs often fail to motivate student effort directly if funding is guaranteed regardless of academic performance. Without performance requirements, students may not exert the necessary effort to remain in school or avoid grade repetition.
Picture this
Think of a scholarship structured like a free gym membership that is immediately revoked if the user skips too many workouts. Because losing the membership means paying out-of-pocket or giving up the privilege, the user is strongly motivated to show up every day and finish their routine.
What the evidence says
Conditioning voucher renewal on passing grades reduced grade repetition rates by 5.3 to 6.3 percentage points and increased 8th-grade completion rates by 8.7 to 9.4 percentage points.
- Who was studied
- N = 1,176 human voucher applicants from low-income households (strata 1 and 2) in Bogotá, Colombia.
- How
- Longitudinal randomized lottery evaluation tracking grade progression, grade repetition, and completion rates over 3-year administrative follow-ups.
What to do
Structure educational voucher policies to require yearly academic grade progression as a mandatory prerequisite for funding renewal.
From the source
"Students' vouchers were renewed only if students successfully completed a grade. The incentive to pass a grade is similar to cash incentive programs which reward students for schooling outcomes."
Are Educational Vouchers Only Redistributive?