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Abstract

This paper investigates the role of permanent and transitory incomes in educational investments using household panel data from Pakistan. The empirical results indicate that transient poverty is a serious obstacle to human capital investment. Our analysis also points out that schooling response to an income shock is consistently larger for daughters than sons and that there may exist resource competition among siblings. Human capital investment and intrahousehold schooling allocation decisions seem to be affected by a need for self-insurance devices under binding credit constraints. As a by-product, our empirical results are in favor of the investment model of education against the consumption model.

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File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2003/2003cf198.pdf
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Bibliographic Info

Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-198.

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Length: 40 pages
Date of creation: Feb 2003
Date of revision:
Handle: RePEc:tky:fseres:2003cf198

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This paper has been announced in the following NEP Reports:

• NEP-AFR-2003-03-10 (Africa)
• NEP-ALL-2003-03-10 (All new papers)
• NEP-DEV-2003-03-10 (Development)

References

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Citations

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Cited by:

1. Marcel Fafchamps & Agnes R. Quisumbing, . "Human Capital, Productivity, and Labor Allocation in Rural Pakistan," Working Papers 97019, Stanford University, Department of Economics.
   
   • Marcel Fafchamps & Agnes R. Quisumbing, 1999. "Human Capital, Productivity, and Labor Allocation in Rural Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 369-406.
   • Fafchamps, Marcel & Quisumbing, Agnes R., 1998. "Human capital, productivity, and labor allocation in rural Pakistan," FCND discussion papers 48, International Food Policy Research Institute (IFPRI).
2. Emla Fitzsimons & Alice Mesnard, 2008. "Are boys and girls affected differently when the household head leaves for good? Evidence from school and work choices in Colombia," IFS Working Papers W08/11, Institute for Fiscal Studies.
3. Michael A. Clemens, 2004. "The Long Walk to School: International education goals in historical perspective," Development and Comp Systems 0403007, EconWPA.
   
   • Michael Clemens, 2004. "The Long Walk to School: International Education Goals in Historical Perspective," Working Papers 37, Center for Global Development.
4. Marcel Fafchamps & Bart Minten, 2007. "Public Service Provision, User Fees and Political Turmoil," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(3), pages 485-518, June.
   
   • Marcel Fafchamps & Bart Minten, 2003. "Public Service Provision, User Fees, and Political Turmoil," Economics Series Working Papers WPS/2003-15, University of Oxford, Department of Economics.
   • Marcel Fafchamps & Bart Minten, 2004. "Public Service Provision, User Fees, and Political Turmoil," Development and Comp Systems 0409039, EconWPA.
   • Marcel Fafchamps & Bart Minten, 2003. "Public Service Provision, User Fees, and Political Turmoil," CSAE Working Paper Series 2003-15, Centre for the Study of African Economies, University of Oxford.
5. Fitzsimons, Emla & Mesnard, Alice, 2008. "Are Boys and Girls Affected Differently When the Household Head Leaves for Good? Evidence from School and Work Choices in Colombia," CEPR Discussion Papers 7040, C.E.P.R. Discussion Papers.

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