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Present Bias and Underinvestment in Education? Long-run Effects of Childhood Exposure to Booms in Colombia

Author

Listed:
  • Carrillo, Bladimir

Abstract

This paper examines the long-run impacts of income shocks by exploiting variation in coffee cultivation patterns within Colombia and world coffee prices during cohorts' school-going years in a differences-in-differences framework. The results indicate that cohorts who faced higher returns to coffee-related work during school-going years completed fewer years of schooling and have lower income in adulthood. These findings suggest that leaving school during temporary booms results in a significant loss of long-term income. This is consistent with the possibility that students may ignore or heavily discount the future consequences of dropout decisions when faced with immediate income gains.

Suggested Citation

  • Carrillo, Bladimir, "undated". "Present Bias and Underinvestment in Education? Long-run Effects of Childhood Exposure to Booms in Colombia," ETA: Economic Theory and Applications 288455, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemth:288455
    DOI: 10.22004/ag.econ.288455
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    Cited by:

    1. John A. List & Ragan Petrie & Anya Samek, 2023. "How Experiments with Children Inform Economics," Journal of Economic Literature, American Economic Association, vol. 61(2), pages 504-564, June.
    2. Thiago Scarelli & David N. Margolis, 2025. "When You Can’t Afford to Wait for a Job: The Role of Time Discounting for Own-Account Workers in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 73(4), pages 1605-1657.
    3. Maurizio Malpede, 2020. "The Dark Side of Batteries: Education, Fertility and Cobalt Mining in the Democratic Republic of Congo," GREEN Working Papers 08, GREEN, Centre for Research on Geography, Resources, Environment, Energy & Networks, Universita' Bocconi, Milano, Italy.
    4. Naomi Gershoni & Rania Gihleb & Assaf Kott & Hani Mansour & Yannay Shanan, 2025. "Adjustments to Reduced Cash Transfers: Religious Safety Nets and Children's Long-Term Outcomes," CESifo Working Paper Series 11856, CESifo.
    5. Sigurdsson,Jósef & Jósef Sigurdsson, 2025. "Transitory Earnings Opportunities and Educational Scarring of Men," CESifo Working Paper Series 11807, CESifo.
    6. Bourassa-Viau, Simon & Garon, Jean-Denis & Haeck, Catherine, 2022. "Educational choices and labour market outcomes in times of crisis," Economics of Education Review, Elsevier, vol. 88(C).
    7. Hern√°n Carvajal, 2023. "Efectos de la suspensi√≥n de las aspersiones a√©reas con glifosato sobre la deserci√≥n escolar en Colombia," Documentos CEDE 20307, Universidad de los Andes, Facultad de Economía, CEDE.
    8. Maurizio Malpede, 2022. "The Dark Side of Batteries: Child Labor and Cobalt Mining in the Democratic Republic of the Congo," GREEN Working Papers 22, GREEN, Centre for Research on Geography, Resources, Environment, Energy & Networks, Universita' Bocconi, Milano, Italy.
    9. Diaz Gutierrez, Julian, 2023. "Trade Effects on Substance Abuse: Evidence from Colombia's Liberalization," 2023 Annual Meeting, July 23-25, Washington D.C. 335460, Agricultural and Applied Economics Association.
    10. Andrew L. Dabalen & Justice Tei Mensah & Nsabimana,Aimable & Nshunguyinka,Alexandre, 2025. "Agricultural Windfalls and Electrification," Policy Research Working Paper Series 11019, The World Bank.
    11. repec:ags:aaea22:335460 is not listed on IDEAS
    12. Patrick Bennett, 2021. "The Work-To-School Transition: Job Displacement and Skill Upgrading among Young High School Dropouts," CESifo Working Paper Series 9417, CESifo.
    13. Xu, Huayu, 2021. "The long-term health and economic consequences of improved property rights," Journal of Public Economics, Elsevier, vol. 201(C).
    14. Johan Hombert & Adrien Matray, 2019. "Technology Boom, Labor Reallocation, and Human Capital Depreciation," Working Papers 260, Princeton University, Department of Economics, Center for Economic Policy Studies..
    15. Boone, Christopher & Kaila, Heidi & Sahn, David E., 2024. "Posh Spice or Scary Spice? Resource Booms, Wealth, and Human Capital across Ages," IZA Discussion Papers 17085, IZA Network @ LISER.
    16. Kebede,Hundanol Atnafu, 2021. "The Pass-Through of International Commodity Price Shocks to Producers’ Welfare : Evidence from EthiopianCoffee Farmers," Policy Research Working Paper Series 9839, The World Bank.
    17. Andrew L. Dabalen & Justice Tei Mensah & Nsabimana,Aimable, 2024. "Local Economic Shocks and Human Capital Accumulation : Evidence from Rwandan Coffee Mills," Policy Research Working Paper Series 10993, The World Bank.
    18. Habtamu Ali Beshir & Jean-François Maystadt, 2024. "Price Shocks and Human Capital: Timing Matters," Economic Development and Cultural Change, University of Chicago Press, vol. 72(4), pages 1567-1583.

    More about this item

    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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