Building upon the social-risk management approach, this paper examines dimensions of household behavior that are important for risk management and reduction of vulnerability, beyond issues of consumption. This paper attempts to assess to what extent risk and vulnerability factors are relevant for household decisions concerning children's school attendance and labor supply. Particular focus has been given to the evaluation of the effect of shocks, credit rationing and insurance on household decisions concerning children's activities. On the basis of a theoretical approach based on well known results relative to human capital investment decision and children's labor supply, the paper developed an estimation strategy that allows an assessment of the importance of a set of risk factors. Because of the potential endogeneity of the variable of interest, methodology based on propensity scores was applied. The analysis of the distribution of propensity scores for the "treated" and "not treated" population for the population of interest allow the conclusion that, given the maintained hypothesis of unconfoudness on observables, casual inference can be safely drawn from these estimates. Also computed is the ATE that confirms the main results obtained through the regression analysis: which indicates that credit rationing is extremely important in determining the household's decision to invest in the human capital of the children.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Understanding Children's Work (UCW Project) in its series UCW Working Paper with number
3.
Length: Date of creation: Nov 2002 Date of revision: Handle: RePEc:ucw:worpap:3
Contact details of provider: Postal: UCW Project, c/o CEIS, University of Rome "Tor Vergata", Via Columbia 2, 00133 Rome, Italy Phone: +39 06 72 59 5618 Fax: +39 06 20206871 Email: Web page: http://www.ucw-project.org More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Cristina A. Valdivia).
Related research
Keywords:
Other versions of this item:
This paper has been announced in the following NEP Reports:
References listed on IDEAS 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.:
Cited by: (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.)