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The Effects of Risk on Education in Indonesia

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  • Emla Fitzsimons
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    Abstract

    We study the effects of risk and uncertainty on education in Indonesia. Households that face more uncertainty and that have limited or no access to formal insurance will have a higher motive for self-insurance, and this may have adverse consequences for investment in child education. A key contribution of the article is to decompose risk into village- and household-level components and to estimate whether they have different effects on education. We find no evidence of household risk affecting child education; however, there is evidence that village risk adversely affects investment in education.

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    File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?id=doi:10.1086/520560
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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

    Volume (Year): 56 (2007)
    Issue (Month): ()
    Pages: 1-25

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    Handle: RePEc:ucp:ecdecc:v:56:y:2007:p:1-25

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    Web page: http://www.journals.uchicago.edu/EDCC/

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    Cited by:
    1. Harounan Kazianga, 2009. "Income Risk and Household Schoo ling Decisions in Burkina Faso," Economics Working Paper Series 0903, Oklahoma State University, Department of Economics and Legal Studies in Business.
    2. Mottaleb, Khondoker Abdul & Mohanty, Samarendu & Hoang, Hoa Thi Khanh & Rejesus, Roderick M., 2013. "The effects of natural disasters on farm household income and expenditures: A study on rice farmers in Bangladesh," Agricultural Systems, Elsevier, vol. 121(C), pages 43-52.

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