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Food Price Inflation and Children's Schooling

  • Michael Grimm

I analyze the impact of food price inflation on parental decisions to send their children to school. Moreover, I use the fact that food crop farmers and cotton farmers were exposed differently to that shock to estimate the income elasticity of school enrolment. The results suggest that the shock-induced loss in purchasing power had an immediate effect on enrolment rates. Instrumental variable estimates show that the effect of household income on children's school enrolment is much larger than a simple OLS regression would suggest. Hence, policies to expand education in Sub-Saharan Africa, should not neglect the demand side.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.92167.de/dp844.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 844.

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Length: 31 p.
Date of creation: 2008
Date of revision:
Handle: RePEc:diw:diwwpp:dp844
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