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How Do Idiosyncratic and Covariate Shocks Affect Human Capital Outcomes For Ethiopian Children

Author

Listed:
  • Mohammad Ali

    (Centenary College of Louisiana, U.S.A)

  • Janak Joshi

    (Hood College, U.S.A)

Abstract

Previous literature has mostly looked at the impact of singular shocks on children’s human capital. In this paper, we explore how disparate idiosyncratic and covariate shocks affect the cognitive, health and time allocation outcomes for a sample of Ethiopian children during the later stages of childhood. We also examine how these relationships differ based on rural/urban location and age groups. Employing a fixed effects panel model, we find that loss of employment, theft, damage to home, and pests affecting crops have the highest negative impact on multiple dimensions of human capital. Moreover, we also find that monetary shocks, especially in rural areas, affect children’s human capital more than natural disasters in Ethiopia. Finally, the relationship between shocks and human capital changes based on the location and age group of the child

Suggested Citation

  • Mohammad Ali & Janak Joshi, 2025. "How Do Idiosyncratic and Covariate Shocks Affect Human Capital Outcomes For Ethiopian Children," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 50(2), pages 1-26.
    • Handle: RePEc:ris:jecdev:0111
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    More about this item

    Keywords

    Shocks; Human Capital; Cognition; Health; Time Allocation;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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