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Household Shocks and Education Investment in Madagascar

  • David SAHN

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Peter GLICK
  • Thomas F. WALKER

This paper measures the extent to which households in Madagascar adjust children’s school attendance in order to cope with exogenous shocks. We model the household’s decisions to enroll children in school, and remove them from school, and measure the impact on these decisions of shocks to household income, assets and labor supply. In order to explore these questions more fully, we use a unique dataset with ten years of recall data on school attendance and household shocks. We estimate hazard models of school entry and exit, and measure the effect of shocks on these decisions. The probability of dropping out of school is significantly increased when a child’s household experiences an illness, death or asset shock. The presence of a health and nutrition program in the local school is associated with earlier school entry and reduced probability of dropout among enrolled students.

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Paper provided by CERDI in its series Working Papers with number 201227.

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Length: 38
Date of creation: 2012
Date of revision:
Handle: RePEc:cdi:wpaper:1374
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  1. Robert Jensen, 2000. "Agricultural Volatility and Investments in Children," American Economic Review, American Economic Association, vol. 90(2), pages 399-404, May.
  2. Margo Hoftijzer & Pierella Paci, 2008. "Making Work Pay in Madagascar : Employment, Growth, and Poverty Reduction," World Bank Publications, The World Bank, number 6320, September.
  3. Jacoby, Hanan G, 1994. "Borrowing Constraints and Progress through School: Evidence from Peru," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 151-60, February.
  4. Beegle, Kathleen & Dehejia, Rajeev H. & Gatti, Roberta, 2006. "Child labor and agricultural shocks," Journal of Development Economics, Elsevier, vol. 81(1), pages 80-96, October.
  5. Robert M. Townsend, . "Risk and Insurance in Village India," University of Chicago - Population Research Center 91-3a, Chicago - Population Research Center.
  6. Anne Case & Christina Paxson & Joseph Ableidinger, 2004. "Orphans in Africa: Parental Death, Poverty and School Enrollment," Working Papers 183, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  7. Paul Gertler & David I. Levine & Minnie Ames, 2004. "Schooling and Parental Death," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 211-225, February.
  8. Udry, Christopher, 1994. "Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 495-526, July.
  9. Appleton, Simon & Hoddinott, John & Knight, John, 1996. "Primary Education as an Input into Post-primary Education: A Neglected Benefit," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 211-19, February.
  10. Ersado, Lire, 2005. "Child Labor and Schooling Decisions in Urban and Rural Areas: Comparative Evidence from Nepal, Peru, and Zimbabwe," World Development, Elsevier, vol. 33(3), pages 455-480, March.
  11. V. Joseph Hotz & Juan Pantano, 2013. "Strategic Parenting, Birth Order and School Performance," NBER Working Papers 19542, National Bureau of Economic Research, Inc.
  12. David E. Sahn & David Stifel, 2003. "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 463-489, December.
  13. Duryea, Suzanne & Lam, David & Levison, Deborah, 2007. "Effects of economic shocks on children's employment and schooling in Brazil," Journal of Development Economics, Elsevier, vol. 84(1), pages 188-214, September.
  14. Brown, Philip H. & Park, Albert, 2002. "Education and poverty in rural China," Economics of Education Review, Elsevier, vol. 21(6), pages 523-541, December.
  15. Yasuyuki Sawada, 2003. "Income Risks, Gender, and Human Capital Investment in a Developing Country," CIRJE F-Series CIRJE-F-198, CIRJE, Faculty of Economics, University of Tokyo.
  16. Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 311-35, July.
  17. David SAHN & Christopher HANDY & Peter GLICK, 2012. "Schooling, Marriage, and Childbearing in Madagascar," Working Papers 201225, CERDI.
  18. Hotz, V. Joseph & Pantano, Juan, 2013. "Strategic Parenting, Birth Order and School Performance," IZA Discussion Papers 7680, Institute for the Study of Labor (IZA).
  19. Joseph Price, 2008. "Parent-Child Quality Time: Does Birth Order Matter?," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
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