Abstract
The IMF is one of the most heavily criticized international financial institutions in the world and
has been accused of having a negative effect on education. By using multi-level analyses, this
paper estimates the effects of IMF supported programs on the growth in school enrollment in
developing countries at the district level for girls and boys aged 9-11 and 12-14. Using data on 44
countries, containing 431 districts between 1997-2007, effects of IMF programs are measured in
three ways. Effects are estimated for whether or not a country has an IMF program, followed by a
comparison between short and long-term programs. The effects of different program
characteristics are also estimated. Results indicate that short-term IMF programs have significant
positive effects on the growth in school enrollment for girls and boys aged 9-11. These effects are
more positive in more rural areas and in less developed regions. Labor market reforms are found
to have strong negative significant effects for girls and boys in both age groups, with stronger
effects in more urban and more developed districts. Policies to decrease the level of corruption,
the level of public debt and increases in net international reserves have positive effects on the
growth in schooling, with stronger effects for different interactions.
