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Household Shocks and Education Investment in Madagascar

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  • Glick, Peter

    (RAND)

  • Sahn, David E.

    (Cornell University)

  • Walker, Thomas F.

    (World Bank)

Abstract

This paper measured the extent to which households in Madagascar adjust children's school attendance in order to cope with exogenous shocks to household income, assets and labour supply. Our analysis was based on a unique data set with 10 years of recall data on school attendance and household shocks. We found that the probability of a child dropping out of school increased significantly when the household experienced an illness, death or asset shock. We proposed a test to distinguish whether the impact of shocks on school attendance could be attributed to credit constraints, labour market rigidities, or a combination of the two. The results of the test suggested that credit constraints, rather than labour market rigidities, explain the inability of households in Madagascar to keep their children in school during times of economic distress.

Suggested Citation

  • Glick, Peter & Sahn, David E. & Walker, Thomas F., 2014. "Household Shocks and Education Investment in Madagascar," IZA Discussion Papers 8731, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8731
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    Cited by:

    1. Gunes, Pinar Mine & Ural Marchand, Beyza, 2020. "Macroeconomic conditions and child schooling in Turkey," Labour Economics, Elsevier, vol. 63(C).
    2. M. Jehangir Khan & Wei Yin & Aqsa Anwar, 2020. "Macro Shocks and Child Grade Attainment in Rural Pakistan," PIDE-Working Papers 2020:16, Pakistan Institute of Development Economics.
    3. E. Sahn David & M. Villa Kira, 2017. "Working Paper 280 - Labor Market Outcomes during Life Transition," Working Paper Series 2397, African Development Bank.
    4. Debdulal Thakur & Shrabani Mukherjee, 2016. "Parents’ Choice Function for Wards’ School Continuation in Rural India: A Case Study in West Bengal," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(1), pages 119-142, February.
    5. Manini Ojha, 2022. "Gender gap in schooling: Is there a role for health insurance?," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(1), pages 29-54, January.
    6. Janna Niens & Lisa Richter-Beuschel & Susanne Bögeholz, 2020. "Land-Use and Health Issues in Malagasy Primary Education—A Delphi Study," Sustainability, MDPI, vol. 12(15), pages 1-31, August.
    7. Aeggarchat Sirisankanan, 2017. "Household Risks and Household Human Capital Investment: Longitudinal Evidence from Thailand," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(2), pages 493-511, April.
    8. Martey, Edward & Etwire, Prince M. & Mockshell, Jonathan & Armah, Ralph & Akorsikumah, Eli, 2023. "Ecological shocks and children’s school attendance and farm work in Ghana," World Development Perspectives, Elsevier, vol. 31(C).
    9. Dominik Schüßler & Torsten Richter & Jasmin Mantilla-Contreras, 2019. "Educational Approaches to Encourage Pro-Environmental Behaviors in Madagascar," Sustainability, MDPI, vol. 11(11), pages 1-20, June.
    10. Debdulal Thakur & Shrabani Mukherjee, 2015. "Parent’s Choice Function for Ward’s School Continuation in Rural India: A Case Study in West Bengal," Working Papers 2015-106, Madras School of Economics,Chennai,India.
    11. Alban Conto, Carolina & Akseer, Spogmai & Dreesen, Thomas & Kamei, Akito & Mizunoya, Suguru & Rigole, Annika, 2021. "Potential effects of COVID-19 school closures on foundational skills and Country responses for mitigating learning loss," International Journal of Educational Development, Elsevier, vol. 87(C).
    12. Sahn, David E. & Villa, Kira M., 2015. "The Role of Personality, Cognition and Shocks in Determining Age of Entry into Labor Market, Sector of Employment, and within Sector Earnings," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205673, Agricultural and Applied Economics Association.
    13. Catalina Herrera Almanza & David E. Sahn, 2018. "Early Childbearing, School Attainment, and Cognitive Skills: Evidence From Madagascar," Demography, Springer;Population Association of America (PAA), vol. 55(2), pages 643-668, April.
    14. Nguyen, Vy T. & King, Elizabeth M., 2022. "Should school fee abolition be comprehensive? An evaluation of Mozambique," International Journal of Educational Development, Elsevier, vol. 88(C).

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    More about this item

    Keywords

    Madagascar; labor supply; time allocation; household shocks; development; education;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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