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Choc de revenu et éducation des enfants en présence d'imperfection du marché du crédit. Le cas du Malawi

  • Tidiane Kinda

This paper shows that households take children out of school as risk coping strategy in response to income shocks under binding credit constraints. The analysis also highlights trade-off in resource allocation for education. A higher number of children in household decreases the probability of their schooling. Instead of the resource competition among siblings, the results show an incitation effect when the schooling status of brothers and sisters is taken into account: children with brothers and sisters going to school have better chance to go to school. This result challenges the generally admitted hypothesis of resource competition among siblings in the literature. A new incitation effect, highlighting the positive effect of siblings schooling on the probability of schooling of other children in the household is thus put forward. JEL Classification: D13, I21, O12.

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Article provided by De Boeck Université in its journal Recherches économiques de Louvain.

Volume (Year): 76 (2010)
Issue (Month): 4 ()
Pages: 391-411

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Handle: RePEc:cai:reldbu:rel_764_0391
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  1. Kazianga, Harounan & Udry, Christopher, 2006. "Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso," Journal of Development Economics, Elsevier, vol. 79(2), pages 413-446, April.
  2. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc.
  3. Stephen Zeldes, . "Optimal Consumption with Stochastic Income: Deviations from Certainty Equivalence," Rodney L. White Center for Financial Research Working Papers 20-86, Wharton School Rodney L. White Center for Financial Research.
  4. Townsend, R.M., 1991. "Risk and Insurance in Village India," University of Chicago - Economics Research Center 91-3, Chicago - Economics Research Center.
  5. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  6. L.Guarcello & F.Mealli & F.Rosati, 2002. "Household Vulnerability and Child Labour: the Effect of Shocks, Credit Rationing and Insurance," UCW Working Paper 3, Understanding Children's Work (UCW Programme).
  7. Sawada, Yasayuki & Lokshin, Michael, 2001. "Household schooling decisions in rural Pakistan," Policy Research Working Paper Series 2541, The World Bank.
  8. Levhari, David & Weiss, Yoram, 1974. "The Effect of Risk on the Investment in Human Capital," American Economic Review, American Economic Association, vol. 64(6), pages 950-63, December.
  9. 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.
  10. Duryea, Suzanne & Lam, David & Levison, Deborah, 2007. "Effects of economic shocks on children's employment and schooling in Brazil," Journal of Development Economics, Elsevier, vol. 84(1), pages 188-214, September.
  11. Chernichovsky, Dov, 1985. "Socioeconomic and Demographic Aspects of School Enrollment and Attendance in Rural Botswana," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 319-32, January.
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