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The (positive) effect of macroeconomic crises on the schoolingand employment decisions of children in a middle-income country

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Author Info
Schady, Norbert R.

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Abstract

The impact of macroeconomic crises on parents'investments in the human capital of their children is a widely contested issue. The author analyzes the effects of the profound macroeconomic crisis in Peru in 1988-92 on the schooling and employment decisions made by urban school-age children. He arrives at two basic findings: First, the crisis had no effect on the attendance rates of school-age children. But the share of children who were both employed and in school fell significantly during the crisis. Second, mean educational attainment was significantly higher for children who were exposed to the crisis than for those who were not. THe author argues that these findings may be related: children who are not employed have more time available and may therefore put more effort into school. He concludes with a discussion of the implications of his findings for the design of appropriate social protection policies.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2762.

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Date of creation: 31 Jan 2002
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Handle: RePEc:wbk:wbrwps:2762

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Related research
Keywords: Public Health Promotion; Primary Education; Health Monitoring&Evaluation; Environmental Economics&Policies; Decentralization; Poverty Assessment; Primary Education; Health Monitoring&Evaluation; Youth and Governance; Environmental Economics&Policies;

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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.:
  1. Glewwe, Paul & Jacoby, Hanan G, 1995. "An Economic Analysis of Delayed Primary School Enrollment in a Low Income Country: The Role of Early Childhood Nutrition," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 156-69, February. [Downloadable!] (restricted)
  2. George Psacharopoulos, 1997. "Child labor versus educational attainment Some evidence from Latin America," Journal of Population Economics, Springer, vol. 10(4), pages 377-386. [Downloadable!] (restricted)
  3. Lisa A. Cameron, 2001. "The Impact Of The Indonesian Financial Crisis On Children: An Analysis Using The 100 Villages Data," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 37(1), pages 43-64, April. [Downloadable!] (restricted)
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  4. Willis, Robert J., 1987. "Wage determinants: A survey and reinterpretation of human capital earnings functions," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 10, pages 525-602 Elsevier. [Downloadable!] (restricted)
  5. Jaime Saavedra Chanduví, 2000. "¿Crisis real o crisis de expectativas? el empleo en el Perú antes y después de las reformas estructurales," Documentos de Trabajo dt25, Grupo de Análisis para el Desarrollo (GRADE). [Downloadable!]
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  6. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September. [Downloadable!] (restricted)
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  7. Jensen, P. & Nielsen, H.S., 1996. "Child Labour or School Attendance? Evidence from Zambia," Papers 96-14, Centre for Labour Market and Social Research, Danmark-.
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  8. Paxson, Christina & Schady, Norbert, 1999. "Do school facilities matter? : the case of the Peruvian Social Fund (FONCODES)," Policy Research Working Paper Series 2229, The World Bank. [Downloadable!]
  9. Flug, Karnit & Spilimbergo, Antonio & Wachtenheim, Erik, 1998. "Investment in education: do economic volatility and credit constraints matter?," Journal of Development Economics, Elsevier, vol. 55(2), pages 465-481, April. [Downloadable!] (restricted)
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  10. Schady, Norbert R., 2000. "Picking the poor : indicators for geographic targeting in Peru," Policy Research Working Paper Series 2477, The World Bank. [Downloadable!]
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  11. Jacoby, Hanan G, 1994. "Borrowing Constraints and Progress through School: Evidence from Peru," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 151-60, February. [Downloadable!] (restricted)
  12. Rosenzweig, Mark R & Evenson, Robert E, 1977. "Fertility, Schooling, and the Economic Contribution of Children in Rural India: An Econometric Analysis," Econometrica, Econometric Society, vol. 45(5), pages 1065-79, July. [Downloadable!] (restricted)
  13. Claudia Goldin, 1999. "Egalitarianism and the Returns to Education during the Great Transformation of American Education," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S65-S94, December. [Downloadable!] (restricted)
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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.)

  1. Murrugarra, Edmundo & Signoret, Jose, 2003. "Vulnerability in consumption, education, and health - evidence from Moldova during the Russian crisis," Policy Research Working Paper Series 3010, The World Bank. [Downloadable!]
  2. Emmanuel Skoufias & Susan Parker, 2006. "Job loss and family adjustments in work and schooling during the Mexican peso crisis," Journal of Population Economics, Springer, vol. 19(1), pages 163-181, February. [Downloadable!] (restricted)
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