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Food price inflation and children's schooling

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  • Grimm, M.

Abstract

I analyze the impact of food price inflation on parental decisions to send their children to school.* Moreover, I use the fact that food crop farmers and cotton farmers were exposed differently to that shock to estimate the income elasticity of school enrolment. The results suggest that the shock-induced loss in purchasing power had an immediate effect on enrolment rates. Instrumental variable estimates show that the effect of household income on children’s school enrolment is much larger than a simple OLS regression would suggest. Hence, policies to expand education in Sub-Saharan Africa should not neglect the demand side.

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Bibliographic Info

Paper provided by International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague in its series ISS Working Papers - General Series with number 18721.

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Date of creation: 01 Apr 2009
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Handle: RePEc:ems:euriss:18721

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Keywords: Africa.; aggregate shocks; education; household income; inflation;

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  1. Behrman, Jere R & Knowles, James C, 1999. "Household Income and Child Schooling in Vietnam," World Bank Economic Review, World Bank Group, vol. 13(2), pages 211-56, May.
  2. Beegle, Kathleen & Dehejia, Rajeev H. & Gatti, Roberta, 2006. "Child labor and agricultural shocks," Journal of Development Economics, Elsevier, vol. 81(1), pages 80-96, October.
  3. Michael Grimm & Isabel Günther, 2005. "Growth and Poverty in Burkina Faso. A Reassessment of the Paradox," Working Papers DT/2005/07, DIAL (Développement, Institutions et Mondialisation).
  4. Alison Aughinbaugh & Maury Gittleman, 2003. "Does Money Matter?: A Comparison of the Effect of Income on Child Development in the United States and Great Britain," Journal of Human Resources, University of Wisconsin Press, vol. 38(2).
  5. Behrman, Jere R. & Wolfe, Barbara L., 1987. "Investments in schooling in two generations in pre-revolutionary Nicaragua : The roles of family background and school supply," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 395-419, October.
  6. Richard Akresh, 2004. "Adjusting Household Structure: School Enrollment Impacts of Child Fostering in Burkina Faso," Working Papers 897, Economic Growth Center, Yale University.
  7. Cogneau, Denis & Maurin, Eric, 2001. "Parental Income and School Attendance in a Low-Income Country: a semi-parametric analysis," Economics Papers from University Paris Dauphine 123456789/4580, Paris Dauphine University.
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  9. Kazianga, Harounan & Udry, Christopher, 2006. "Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso," Journal of Development Economics, Elsevier, vol. 79(2), pages 413-446, April.
  10. 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.
  11. Gunther, Isabel & Grimm, Michael, 2007. "Measuring pro-poor growth when relative prices shift," Journal of Development Economics, Elsevier, vol. 82(1), pages 245-256, January.
  12. A Chevalier & C Harmon & V O'Sullivan & I Walker, 2010. "The Impact of Parental Income and Education on the Schooling of their Children," Working Papers 610852, Lancaster University Management School, Economics Department.
  13. Maurin, Eric, 2002. "The impact of parental income on early schooling transitions: A re-examination using data over three generations," Journal of Public Economics, Elsevier, vol. 85(3), pages 301-332, September.
  14. John F. Ermisch & Marco Francesconi, 2001. "Family structure and children's achievements," Journal of Population Economics, Springer, vol. 14(2), pages 249-270.
  15. Løken, Katrine Vellesen, 2007. "Family income and children's education: Using the Norwegian oil boom as a natural experiment," Working Papers in Economics 03/07, University of Bergen, Department of Economics.
  16. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
  17. Robert Jensen, 2000. "Agricultural Volatility and Investments in Children," American Economic Review, American Economic Association, vol. 90(2), pages 399-404, May.
  18. Richard Akresh, 2005. "Risk, Network Quality, and Family Structure: Child Fostering Decisions in Burkina Faso," Working Papers 902, Economic Growth Center, Yale University.
  19. Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 311-35, July.
  20. Jacoby, Hanan G, 1994. "Borrowing Constraints and Progress through School: Evidence from Peru," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 151-60, February.
  21. John Shea, 1997. "Does Parents' Money Matter?," NBER Working Papers 6026, National Bureau of Economic Research, Inc.
  22. Thomas, Duncan & Beegle, Kathleen & Frankenberg, Elizabeth & Sikoki, Bondan & Strauss, John & Teruel, Graciela, 2004. "Education in a crisis," Journal of Development Economics, Elsevier, vol. 74(1), pages 53-85, June.
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Cited by:
  1. Hartwig, R. & Grimm, M., 2010. "An assessment of the effects of the 2002 food crisis on children's health in Malawi," ISS Working Papers - General Series 489, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  2. Karan Singh, B, 2011. "Impact of adverse economic shocks on the Indian child labour market and the schooling of children of poor households," MPRA Paper 30958, University Library of Munich, Germany.

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