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Household income dynamics and investment in children: Evidence from India

Author

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  • Sowmya Dhanaraj
  • Christy Mariya Paul
  • Smit Gade

Abstract

Household income shocks in developing countries are known to have an impact on the education investments for children. In this paper, we explore the effects of various income and expenditure shocks on educational investment and cognitive outcomes of children using three rounds of household-level panel data from Young Lives survey conducted in two southern states of India – Andhra Pradesh and Telangana. We find that idiosyncratic shocks like paternal health shocks and livestock loss translate into lower inputs of children’s education, which reduce their cognitive ability captured through vocabulary and mathematics tests.

Suggested Citation

  • Sowmya Dhanaraj & Christy Mariya Paul & Smit Gade, 2019. "Household income dynamics and investment in children: Evidence from India," Education Economics, Taylor & Francis Journals, vol. 27(5), pages 507-520, September.
    • Handle: RePEc:taf:edecon:v:27:y:2019:i:5:p:507-520
    DOI: 10.1080/09645292.2019.1599325
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    Cited by:

    1. Tsaneva Magda & Balakrishnan Uttara, 2021. "Local Labor Markets and Child Learning Outcomes in India," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(2), pages 723-750, April.
    2. Sagarika Dey & Amrita Nath, 2024. "Welfare shocks, coping strategies and safety nets: a study on rural households of Cachar District, Assam," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(3), pages 907-930, December.
    3. Shukla, Prakash Kumar & Reddy A, Bheemeshwar & Kumar, Dushyant, 2024. "Class in caste: Inequalities in human capital investments in children in India," International Journal of Educational Development, Elsevier, vol. 106(C).
    4. Andy Prasetyo Wati & Sheerad Sahid, 2022. "Factors Influencing Parents’ Awareness of Children’ Education Investment: A Systematic Review," Sustainability, MDPI, vol. 14(14), pages 1-13, July.
    5. Zeng, Yuan & Chen, Chunxiao & Wang, Chun & Zou, Jianke, 2025. "Education investment, social security, and household financial market participation," Finance Research Letters, Elsevier, vol. 77(C).

    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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