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Risk and Schooling Decisions in Rural Madagascar: a Panel Data Analysis

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  • Robilliard, Anne-Sophie
  • Gubert, Flore

Abstract

Most 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 Info

Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/4372.

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Date of creation: Mar 2008
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Publication status: Published in Journal of African Economies, 2008, Vol. 17, no. 2. pp. 207-238.Length: 31 pages
Handle: RePEc:dau:papers:123456789/4372

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Related research

Keywords: Stratégies de gestion des risques; Risk-coping strategies; Décision de scolarisation; Schooling decisions; Transitory shocks; Chocs transitoires;

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Cited by:
  1. Delpierre, Matthieu & Verheyden, Bertrand & Weynants, Stephanie, 2012. "On the interaction between risk-taking and risk-sharing under farm household wealth heterogeneity," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122556, European Association of Agricultural Economists.
  2. VERHEYDEN Bertrand & FAYE Ousmane, 2011. "Fertility and Child Occupation: Theory and Evidence from Senegal," CEPS/INSTEAD Working Paper Series 2011-59, CEPS/INSTEAD.
  3. Emla Fitzsimons & Alice Mesnard, 2012. "How children's schooling and work are affected when their father leaves permanently: evidence from Colombia," IFS Working Papers W12/04, Institute for Fiscal Studies.
  4. Gaspart, Frédéric & Thomas, Anne-Claire, 2012. "Does poverty trap rural Malagasy households?," Economics Papers from University Paris Dauphine 123456789/10594, Paris Dauphine University.
  5. Frédéric Gaspart & Anne-Claire Thomas, 2012. "Does poverty trap rural Malagasy households?," Working Papers DT/2012/07, DIAL (Développement, Institutions et Mondialisation).
  6. Fitzsimons, Emla & Mesnard, Alice, 2013. "Can conditional cash transfers compensate for a father's absence ?," Policy Research Working Paper Series 6476, The World Bank.

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