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Income Risks, Gender, and Human Capital Investment in a Developing Country

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Author Info
Yasuyuki Sawada (Faculty of Economics, University of Tokyo)

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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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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
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Handle: RePEc:tky:fseres:2003cf198

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  9. Pender, John L., 1996. "Discount rates and credit markets: Theory and evidence from rural india," Journal of Development Economics, Elsevier, vol. 50(2), pages 257-296, August. [Downloadable!] (restricted)
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    Other versions:
    • Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657 Elsevier. [Downloadable!] (restricted)
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  19. Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998. "Drought and saving in West Africa: are livestock a buffer stock?," Journal of Development Economics, Elsevier, vol. 55(2), pages 273-305, April. [Downloadable!] (restricted)
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  20. Rosenzweig, Mark R & Stark, Oded, 1989. "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 905-26, August. [Downloadable!] (restricted)
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  23. Kochar, Anjini, 1999. "Evaluating Familial Support for the Elderly: The Intrahousehold Allocation of Medical Expenditures in Rural Pakistan," Economic Development and Cultural Change, University of Chicago Press, vol. 47(3), pages 620-56, April.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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. [Downloadable!] (restricted)
  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. [Downloadable!]
  3. Michael A. Clemens, 2004. "The Long Walk to School: International education goals in historical perspective," Development and Comp Systems 0403007, EconWPA. [Downloadable!]
    Other versions:
  4. Marcel Fafchamps & Bart Minten, 2004. "Public Service Provision, User Fees, and Political Turmoil," Development and Comp Systems 0409039, EconWPA. [Downloadable!]
    Other versions:
  5. 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). [Downloadable!]
    Other versions:
  6. Christopher M Gilbert & Francesca Modena, 2009. "The Effects of Risk and Shocks on School Progression in Rural Indonesia," Economics Discussion Papers 679, University of Essex, Department of Economics. [Downloadable!]
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