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The effect of coffee price shock on school dropout: new evidence from the 2008 global financial crisis

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  • Abraham Abebe Asfaw

Abstract

This article examines the effect of coffee price shock on the school dropout status of children in rural Ethiopia. To identify the effect, I exploit the exogenous coffee price shock caused by the 2008 global financial crisis. Using a unique rural data set collected before and shortly after the crisis, I compare the school dropout status of children in coffee-producing and non–coffee-producing villages. The difference-in-difference estimate suggests that the decline in the global price of coffee during the financial crisis increased school dropout rates among children aged 15–18 in coffee-producing villages. The effect is more pronounced among female children in this age group.

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  • Abraham Abebe Asfaw, 2018. "The effect of coffee price shock on school dropout: new evidence from the 2008 global financial crisis," Applied Economics Letters, Taylor & Francis Journals, vol. 25(7), pages 482-486, April.
    • Handle: RePEc:taf:apeclt:v:25:y:2018:i:7:p:482-486
    DOI: 10.1080/13504851.2017.1340560
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    Cited by:

    1. Luisito Bertinelli & Arnaud Bourgain, 2021. "Impact of mining boom on the quality of public goods in Sub-Saharan Africa," DEM Discussion Paper Series 21-13, Department of Economics at the University of Luxembourg.
    2. Wodon, Quentin, 2022. "Global report on integral human development 2022: measuring the contributions of Catholic and other faith-based organizations to education, healthcare, and social protection," MPRA Paper 114809, University Library of Munich, Germany.

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