Description:

Speaker Elizabeth Jaramillo

Title: "Family Dynamics and Educational Outcomes: The Impact of Financial Aid on Siblings"

Abstract: Families play a crucial role in shaping human capital trajectories, with siblings forming significant social interactions through shared upbringing, exposure to similar experiences, and access to common resources. We study sibling spillover effects of Colombia's Ser Pilo Program, which offers financial aid to high-achieving children from low-income households. Program eligibility is based on two continuous measures: the family's poverty index and the high school exit exam performance. Using a multivariate regression discontinuity design and considering two eligibility criteria of the program, we estimate sibling spillover effects across both dimensions separately. For low SES families, the policy has positive effects on college enrollment in public institutions. For high SES families, we also observe a negative motivational effect on school dropout, as this population is ineligible for the program.