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The Effects of Risk on Education in Indonesia

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  • Emla Fitzsimons

Abstract

We study the effects of risk and uncertainty on education in Indonesia. Households that face more uncertainty and that have limited or no access to formal insurance will have a higher motive for self-insurance, and this may have adverse consequences for investment in child education. A key contribution of the article is to decompose risk into village- and household-level components and to estimate whether they have different effects on education. We find no evidence of household risk affecting child education; however, there is evidence that village risk adversely affects investment in education.

Suggested Citation

  • Emla Fitzsimons, 2007. "The Effects of Risk on Education in Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 56(1), pages 1-25, October.
    • Handle: RePEc:ucp:ecdecc:v:56:y:2007:p:1-25
    DOI: 10.1086/520560
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    Cited by:

    1. Marta Menéndez & Jérémie Gignoux, 2012. "Critical periods and the long-run effects of income shocks on education: evidence from Indonesia," Post-Print hal-01617427, HAL.
    2. Kazianga, Harounan, 2012. "Income Risk and Household Schooling Decisions in Burkina Faso," World Development, Elsevier, vol. 40(8), pages 1647-1662.
    3. Andrew D. Foster & Esther Gehrke, 2017. "Start What You Finish! Ex Ante Risk and Schooling Investments in the Presence of Dynamic Complementarities," NBER Working Papers 24041, National Bureau of Economic Research, Inc.
    4. Jonathan Colmer, 2021. "Rainfall Variability, Child Labor, and Human Capital Accumulation in Rural Ethiopia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 858-877, May.
    5. Mottaleb, Khondoker Abdul & Mohanty, Samarendu & Hoang, Hoa Thi Khanh & Rejesus, Roderick M., 2013. "The effects of natural disasters on farm household income and expenditures: A study on rice farmers in Bangladesh," Agricultural Systems, Elsevier, vol. 121(C), pages 43-52.
    6. Niloofar Khalili & Muhammad Arshad & Zakaria Farajzadeh & Harald Kächele & Klaus Müller, 2021. "Does drought affect smallholder health expenditures? Evidence from Fars Province, Iran," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(1), pages 765-788, January.

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