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Commodity Price Shocks and Child Outcomes: The 1990 Cocoa Crisis in Cote d'Ivoire

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  • Denis Cogneau

    (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, IRD - Institut de Recherche pour le Développement - Institut de Recherche pour le Développement)

  • Rémi Jedwab

    (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)

Abstract

We look at the drastic cut of the administered cocoa producer price in 1990 Cote d'Ivoire and study to which extent cocoa producers' children suffered from this severe aggregate shock in terms of school enrollment, labor, height stature and morbidity. Using pre-crisis (1985-88) and post-crisis (1993) data, we propose a difference-in-difference strategy to identify the causal effect of the cocoa shock on child outcomes, whereby we compare children of cocoa-producing households and children of other farmers living in the same district or the same village. This causal effect is shown to be rather strong for the four child outcomes we examine. Hence human capital investments are definitely procyclical in this context. We also argue that the difference-in-difference variations can be interpreted as private income effects, likely to derive from tight liquidity constraints.

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Bibliographic Info

Paper provided by HAL in its series PSE Working Papers with number halshs-00967328.

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Date of creation: May 2010
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Handle: RePEc:hal:psewpa:halshs-00967328

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Related research

Keywords: Education ; Health ; Child Labor ; Commodity prices ; Agriculture ; Africa;

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  1. 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.
  2. Robert Jensen, 2000. "Agricultural Volatility and Investments in Children," American Economic Review, American Economic Association, vol. 90(2), pages 399-404, May.
  3. Yamano, Takashi & Alderman, Harold & Christiaensen, Luc J.M., 2003. "Child Growth, Shocks, And Food Aid In Rural Ethiopia," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25838, International Association of Agricultural Economists.
  4. Antoine Bommier & Sylvie Lambert, 2000. "Education Demand and Age at School Enrollment in Tanzania," Journal of Human Resources, University of Wisconsin Press, vol. 35(1), pages 177-203.
  5. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
  6. Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, vol. 81(2), pages 386-414, December.
  7. Cutler, David M. & Knaul, Felicia & Lozano, Rafael & Mendez, Oscar & Zurita, Beatriz, 2002. "Financial crisis, health outcomes and ageing: Mexico in the 1980s and 1990s," Journal of Public Economics, Elsevier, vol. 84(2), pages 279-303, May.
  8. Glewwe, Paul & Jacoby, Hanan G., 2004. "Economic growth and the demand for education: is there a wealth effect?," Journal of Development Economics, Elsevier, vol. 74(1), pages 33-51, June.
  9. Kruger, Diana I., 2007. "Coffee production effects on child labor and schooling in rural Brazil," Journal of Development Economics, Elsevier, vol. 82(2), pages 448-463, March.
  10. Mendez, Oscar & Cutler, David & Knaul, Felicia & Lozano, Rafael & Zurita, Beatriz, 2002. "Financial Crisis, Health Outcomes, and Aging: Mexico in the 1980s and 1990s," Scholarly Articles 2707939, Harvard University Department of Economics.
  11. Esther Duflo, 2000. "Child Health and Household Resources in South Africa: Evidence from the Old Age Pension Program," American Economic Review, American Economic Association, vol. 90(2), pages 393-398, May.
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