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Long-Term Impact of Investments in Early Schooling – Empirical Evidence from Rural Ethiopia

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  • Subha Mani

    (Fordham University, Department of Economics)

  • John Hoddinott

    (International Food Policy Research Institute)

  • John Strauss

    (University of Southern California, Department of Economics)

Abstract

This paper identifies the cumulative impact of early schooling investments on later schooling outcomes in a developing country context using enrollment status and relative grade attainment as short-run and long-run measures of schooling. Using a child-level longitudinal data set from rural Ethiopia, we estimate a dynamic conditional schooling demand function where the coefficient estimate on the lagged dependent variable captures the impact of all previous periods schooling inputs and resources. We find that this lagged dependent variable indicates a strong positive association between current and lagged schooling. Past history matters more for girls than boys and for children from higher income households compared to the poor.

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Bibliographic Info

Paper provided by Fordham University, Department of Economics in its series Fordham Economics Discussion Paper Series with number dp2009-09.

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Date of creation: 2009
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Handle: RePEc:frd:wpaper:dp2009-09

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Web page: http://www.fordham.edu/economics/
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  1. Orazem, Peter & King, Elizabeth M., 2008. "Schooling in Developing Countries: The Roles of Supply, Demand and Government Policy," Staff General Research Papers 12838, Iowa State University, Department of Economics.
  2. Alderman,Harold & Hoddinott, John & Kinsey, Bill, 2003. "Long-term consequences of early childhood malnutrition," FCND briefs 168, International Food Policy Research Institute (IFPRI).
  3. Sharon L. Maccini & Dean Yang, 2008. "Under the Weather: Health, Schooling, and Economic Consequences of Early-Life Rainfall," NBER Working Papers 14031, National Bureau of Economic Research, Inc.
  4. Hoddinott, John & Kinsey, Bill, 2001. " Child Growth in the Time of Drought," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(4), pages 409-36, September.
  5. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
  6. Petra E. Todd & Kenneth I. Wolpin, 2007. "The Production of Cognitive Achievement in Children: Home, School, and Racial Test Score Gaps," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 91-136.
  7. Richard Paap & Frank Kleibergen, 2004. "Generalized Reduced Rank Tests using the Singular Value Decomposition," Econometric Society 2004 Australasian Meetings 195, Econometric Society.
  8. Andrabi, Tahir & Das, Jishnu & Khwaja, Asim Ijaz & Zajonc, Tristan, 2009. "Here Today, Gone Tomorrow? Examining the Extent and Implications of Low Persistence in Child Learning," Scholarly Articles 4412571, Harvard Kennedy School of Government.
  9. Subha Mani, 2008. "Is there Complete, Partial, or No Recovery from Childhood Malnutrition? Empirical Evidence from Indonesia," Fordham Economics Discussion Paper Series dp2008-19, Fordham University, Department of Economics.
  10. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
  11. Behrman, Jere R & Sengupta, Piyali & Todd, Petra, 2005. "Progressing through PROGRESA: An Impact Assessment of a School Subsidy Experiment in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 237-75, October.
  12. Strauss, John & Thomas, Duncan, 1995. "Human resources: Empirical modeling of household and family decisions," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 34, pages 1883-2023 Elsevier.
  13. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages F3-F33, February.
  14. Fafchamps, Marcel & Quisumbing, Agnes R, 2005. "Marriage, Bequest, and Assortative Matching in Rural Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 347-80, January.
  15. Stefan Dercon, 2005. "Risk, Poverty and Vulnerability in Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(4), pages 483-488, December.
  16. Michael P. Murray, 2006. "Avoiding Invalid Instruments and Coping with Weak Instruments," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 111-132, Fall.
  17. Stefan Dercon & Daniel O. Gilligan & John Hoddinott & Tassew Woldehanna, 2007. "The impact of roads and agricultural extension on consumption growth and poverty in fifteen Ethiopian villages," CSAE Working Paper Series 2007-01, Centre for the Study of African Economies, University of Oxford.
  18. Eric A. Hanushek, 1979. "Conceptual and Empirical Issues in the Estimation of Educational Production Functions," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 351-388.
  19. Cebu Study Team, 1992. "A child health production function estimated from longitudinal data," Journal of Development Economics, Elsevier, vol. 38(2), pages 323-351, April.
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