The Impact of Ethiopian Productive Safety Net Program on Children's Educational Aspirations and Attainments

Abstract The Productive Safety Net Program (PSNP) was launched by the government of Ethiopia in 2005 to support food-insecure rural households. In this paper, we evaluate the impact of PSNP on children's educational aspirations and actual attainments. We use longitudinal data from the Ethiopian sample of the Young Lives' survey and by means of a differences-in-differences, individual fixed-effects estimator, we find that the program increases both educational aspirations and actual attainment of children. In our preferred specification, the immediate effect (after 3 years) of the program is to increase by 1.05 years of educational aspirations and by about 0.35 years actual education of children. Furthermore, there is evidence that the program has significant effect even in the long run (after 6 years). The results point to broad and long-lasting positive effects on children education of a program designed primarily to relieve chronically poor households from food insecurity.