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Who Gets to Stay in School? Long-run Impact of Income Shocks on Schooling in Rural Tanzania

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  • Sofya Krutikova
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    Abstract

    This paper shows that income shocks to rural households have permanent effects on the eductional attainment of 7-15 year old children within the household.� Using a 13 year panel survey of households in rural Tanzania, I find that idiosyncratic crop shocks such as pests, theft and fire cause changes in the distribution of schooling among children within the household that persist 10-13 years after the shock.� They affect older (12-15) girls and younger (7-11) boys most adversely.� The effects are remarkably persistent in households affected by shocks of varying magnitudes.� An investigation of plausible channels for these effects suggests that an increase in the chore burden of older girls within the household in response to a crop shock is likely to be part of the explanation for the adverse effect of shocks on this cohort.

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    Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number CSAE WPS/2010-36.

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    Date of creation: 01 Nov 2010
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    Handle: RePEc:oxf:wpaper:csae-wps/2010-36

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    1. Paxson, Christina H, 1992. "Using Weather Variability to Estimate the Response of Savings to Transitory Income in Thailand," American Economic Review, American Economic Association, vol. 82(1), pages 15-33, March.
    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. George Psacharopoulos & Harry Anthony Patrinos, 1997. "Family size, schooling and child labor in Peru - An empirical analysis," Journal of Population Economics, Springer, vol. 10(4), pages 387-405.
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