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Commodity Price Shocks and Child Outcomes: The 1990 Cocoa Crisis in Côte d'Ivoire

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  • Cogneau, Denis
  • Jedwab, Rémi

Abstract

We look at the drastic cut of the administered cocoa producer price in 1990 Côte d'Ivoire and study to which extent cocoa producers' children suffered from this severe aggregate shock in terms of school enrollment, labor, height stature and morbidity. Using pre-crisis (1985-88) and post- crisis (1993) data, we propose a difference-in-difference strategy to identify the causal effect of the cocoa shock on child outcomes, whereby we compare children of cocoa-producing households and children of other farmers living in the same district or the same village. This causal effect is shown to be rather strong for the four child outcomes we examine. Hence human capital investments are definitely procyclical in this context. We also argue that the difference-in-difference variations can be interpreted as private income effects, likely to derive from tight liquidity constraints.

Suggested Citation

  • Cogneau, Denis & Jedwab, Rémi, 2010. "Commodity Price Shocks and Child Outcomes: The 1990 Cocoa Crisis in Côte d'Ivoire," CEPREMAP Working Papers (Docweb) 1018, CEPREMAP.
  • Handle: RePEc:cpm:docweb:1018
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    Citations

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    Cited by:

    1. Edmonds, Eric V. & Shrestha, Maheshwor, 2014. "You get what you pay for: Schooling incentives and child labor," Journal of Development Economics, Elsevier, vol. 111(C), pages 196-211.
    2. Ulrik Beck & Saurabh Singhal & Finn Tarp, 2016. "Coffee price volatility and intra-household labour supply," WIDER Working Paper Series 016, World Institute for Development Economic Research (UNU-WIDER).
    3. repec:nva:unnvaa:wp04-2012 is not listed on IDEAS
    4. Denis Cogneau & Kenneth Houngbedji & Sandrine Mesplé-Somps, 2013. "The fall of the elephant. Two decades of poverty increase in Côte d’Ivoire (1988 - 2008)," Post-Print hal-01517394, HAL.
    5. Fatoke Dato, Mafaizath A., 2015. "Impact of income shock on children’s schooling and labor in a West African country," MPRA Paper 64317, University Library of Munich, Germany.
    6. Ralitza Dimova, 2015. "The welfare impact of rising food prices," IZA World of Labor, Institute for the Study of Labor (IZA), pages 135-135, March.
    7. Lazzaroni, Sara & Wagner, Natascha, 2016. "Misfortunes never come singly: Structural change, multiple shocks and child malnutrition in rural Senegal," Economics & Human Biology, Elsevier, vol. 23(C), pages 246-262.
    8. repec:oxf:wpaper:oxcarre-research-paper-131 is not listed on IDEAS
    9. Joseph Cummins, 2013. "On the Use and Misuse of Child Height-for-Age Z-score in the Demographic and Health Surveys," Working Papers 201417, University of California at Riverside, Department of Economics.

    More about this item

    Keywords

    Education; Health; Child Labor; Commodity price Education; Health; Child Labor; Commodity price;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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