Did Progresa send drop-outs back to school? Mara Nieves ValdØs May 9, 2006 Abstract This paper analyzes the e/ects of Progresa program on school enrollment for the beneciaries as a whole and for a particular group of them. The latter is the group of individuals that face a re-enrollment decision. Progresa is a con- ditional transfers program that o/ers grants to poor children in Mexican rural communities. Average treatment e/ects can be a good general characterization of the overall e/ect of the program, but it will have a di/erent impact on di/er- ent individuals. Therefore, it is also important to take into account individual heterogeneity. Results from di/erence estimators and a probit estimation of a reduced form equation for schooling decision are presented. Since the esti- mated program e/ect on the probability of school attendance for drop-outs is non-positive for most of the observations, the main conclusion is that Progresa did not send drop-outs back to school. JEL classication C21; C23; I28; I38 Keywords Poverty program evaluation; School enrollment; Re-enrollment decision; Heterogeneous program e/ects Special thanks to Pedro AlbarrÆn and Ricardo Mora for their advice, remarks and comments. 1