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Income Risk and Household Schooling Decisions in Burkina Faso

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  • Kazianga, Harounan

Abstract

I study the effects of income uncertainty on household schooling decisions. Households with more volatile incomes have a greater incentive to build a buffer stock to insure against unforeseen adverse shocks, and non-enrollment can be part of such a strategy. I use data from rural Burkina Faso, where school attainment is low and income shocks are frequent, to show that income uncertainty reduces several educational outcomes, including enrollment, education expenditures, and years of education completed. The findings suggest that income uncertainty has larger welfare costs in terms of human capital than is implied by studies that only focus on realized income shocks.

Suggested Citation

  • Kazianga, Harounan, 2012. "Income Risk and Household Schooling Decisions in Burkina Faso," World Development, Elsevier, vol. 40(8), pages 1647-1662.
  • Handle: RePEc:eee:wdevel:v:40:y:2012:i:8:p:1647-1662
    DOI: 10.1016/j.worlddev.2012.04.017
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    1. repec:eee:wodepe:v:6:y:2017:i:c:p:1-10 is not listed on IDEAS
    2. Grimm, Michael, 2008. "Food price inflation and schooling," Proceedings of the German Development Economics Conference, Zurich 2008 14, Verein für Socialpolitik, Research Committee Development Economics.
    3. Michael Grimm, 2008. "Food Price Inflation and Children's Schooling," Discussion Papers of DIW Berlin 844, DIW Berlin, German Institute for Economic Research.
    4. Jonathan Colmer, 2013. "Climate Variability, Child Labour and Schooling: Evidence on the Intensive and Extensive Margin," GRI Working Papers 132, Grantham Research Institute on Climate Change and the Environment.
    5. Fatoke Dato, Mafaizath A., 2015. "Impact of income shock on children’s schooling and labor in a West African country," MPRA Paper 64317, University Library of Munich, Germany.
    6. Friebel, Guido & Leinyuy, Jibirila & Seabright, Paul, 2015. "The Schubert Effect: When Flourishing Businesses Crowd Out Human Capital," World Development, Elsevier, vol. 68(C), pages 124-135.
    7. repec:pal:eurjdr:v:29:y:2017:i:2:d:10.1057_s41287-016-0012-0 is not listed on IDEAS
    8. Parizeau, Kate, 2015. "When Assets are Vulnerabilities: An Assessment of Informal Recyclers’ Livelihood Strategies in Buenos Aires, Argentina," World Development, Elsevier, vol. 67(C), pages 161-173.

    More about this item

    Keywords

    education; income risk; developing countries; Burkina Faso;

    JEL classification:

    • D99 - Microeconomics - - Micro-Based Behavioral Economics - - - Other
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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