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Risk, Financial Markets, and Human Capital in a Developing Country

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Author Info
Jacoby, Hanan G
Skoufias, Emmanuel

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Abstract

This paper explores the link between financial market incompleteness and human capital accumulation. The authors examine how child school attendance responds to seasonal fluctuations in the income of agrarian households using panel data from rural India. To pinpoint market imperfections, they study responses to aggregate and idiosyncratic, as well as to anticipated and unanticipated, income shocks. The authors' main finding is that seasonal fluctuations in school attendance are a form of self-insurance but one which does not result in a substantial loss of human capital on average. Copyright 1997 by The Review of Economic Studies Limited.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 64 (1997)
Issue (Month): 3 (July)
Pages: 311-35
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Handle: RePEc:bla:restud:v:64:y:1997:i:3:p:311-35

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This page was last updated on 2009-10-26.

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