Risk and Schooling Decisions in Rural Madagascar: a Panel Data Analysis
AbstractMost households in rural Madagascar are engaged in agriculture and derive a large share of their income from the production of food or cash crops and from animal husbandry. However, agricultural yields can be extremely volatile due to weather conditions, pests, insects, rodents and other calamities. As a result, households record large fluctuations in their incomes that must be dealt with. Since the usual consumption-smoothing market mechanisms are quite limited in the Malagasy context, households need to rely on nonmarket mechanisms or to adopt multi-faceted strategies to cope with risk. In this paper, we examine the possibility that parents obtain informal income insurance by letting their children work. We test this hypothesis by examining the relationship between household income shocks and human capital investment in children. In particular, we investigate whether children’s propensity to join school and to drop out of school responds to transient shocks. We also investigate issues such as gender and intrahousehold resource allocation.
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Bibliographic InfoPaper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/4372.
Date of creation: Mar 2008
Date of revision:
Publication status: Published in Journal of African Economies, 2008, Vol. 17, no. 2. pp. 207-238.Length: 31 pages
Stratégies de gestion des risques; Risk-coping strategies; Décision de scolarisation; Schooling decisions; Transitory shocks; Chocs transitoires;
Other versions of this item:
- Flore Gubert & Anne-Sophie Robilliard, 2008. "Risk and Schooling Decisions in Rural Madagascar: A Panel Data-Analysis," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 17(2), pages 207-238, March.
- Flore Gubert & Anne-Sophie Robilliard, 2006. "Risk and Schooling Decisions in Rural Madagascar: a Panel Data Analysis," Working Papers DT/2006/08, DIAL (Développement, Institutions et Mondialisation).
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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