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Income Risk and Household Schooling Decisions in Burkina Faso

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  • Kazianga, Harounan

Abstract

I study the effects of income uncertainty on household schooling decisions. Households with more volatile incomes have a greater incentive to build a buffer stock to insure against unforeseen adverse shocks, and non-enrollment can be part of such a strategy. I use data from rural Burkina Faso, where school attainment is low and income shocks are frequent, to show that income uncertainty reduces several educational outcomes, including enrollment, education expenditures, and years of education completed. The findings suggest that income uncertainty has larger welfare costs in terms of human capital than is implied by studies that only focus on realized income shocks.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 40 (2012)
Issue (Month): 8 ()
Pages: 1647-1662

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Handle: RePEc:eee:wdevel:v:40:y:2012:i:8:p:1647-1662

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: education; income risk; developing countries; Burkina Faso;

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Cited by:
  1. Jonathan Colmer, 2013. "Climate Variability, Child Labour and Schooling: Evidence on the Intensive and Extensive Margin," Grantham Research Institute on Climate Change and the Environment Working Papers 132, Grantham Research Institute on Climate Change and the Environment.
  2. Michael Grimm, 2008. "Food price inflation and schooling," Ibero America Institute for Econ. Research (IAI) Discussion Papers 174, Ibero-America Institute for Economic Research.
  3. Grimm, M., 2009. "Food price inflation and children's schooling," ISS Working Papers - General Series 18721, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  4. Jonathan Colmer, 2013. "Climate Variability, Child Labour and Schooling: Evidence on the Intensive and Extensive Margin," Working Papers 2013.81, Fondazione Eni Enrico Mattei.

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