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How a Free Bicycle Boosted Girls' School Enrollment by 30% in India

Karthik Muralidharan, Nishith Prakash

In 2006, the Indian state of Bihar launched a radical policy: give every girl entering 9th grade money to buy a bicycle. The result? A 30% jump in secondary school enrollment and a 40% reduction in the gender gap. This video breaks down the surprising economics behind this 'Conditional Kind Transfer'—why a bike worked better than cash, how it slashed travel costs and safety fears, and why it didn't improve test scores. Based on a landmark study by economists M. Muralidharan and K. Prakash, we explore how a simple tool can reshape social norms and boost education in the developing world.

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