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Child Income as an Insurance Mechanism. Consequences for the Health-Education Relationship

  • Renaud Bourlès

    ()

    (AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - École des Hautes Études en Sciences Sociales (EHESS) - Ecole Centrale Marseille (ECM))

  • Bruno Ventelou

    ()

    (AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - École des Hautes Études en Sciences Sociales (EHESS) - Ecole Centrale Marseille (ECM), SE4S - Sciences économiques et sociales, systèmes de santé, sociétés - INSERM : U912 - Institut de recherche pour le développement [IRD] - Université de la Méditerranée - Aix-Marseille II - ORS PACA)

  • Maame Esi Woode

    (AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - École des Hautes Études en Sciences Sociales (EHESS) - Ecole Centrale Marseille (ECM))

This paper analyzes the relationships between HIV/AIDS and education taking into account the appropriative nature of child income. We first build a simple theoretical model linking parental health risk, educational choice and appropriation of future children's income. We show that considering (remittances from) child's income as an insurance asset can reverse the usual negative relationship between disease prevalence and educational investment. This prediction is tested on data compiled from the Demographic and Health Survey (DHS) database for 17 Sub-Sahara African (SSA) countries between the years 2003 to 2010 for children aged between 6 and 22-years-old. To account for the hierarchical nature of the data we employ a multilevel analysis. We find that, in general, the impact of community HIV prevalence on school enrollment is insignificant. Once the data is split to account for differences in appropriation, the effect of community prevalence becomes positive and sometimes significant for highly appropriable groups (rural, girls) and remains either negative for the rest.

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Paper provided by HAL in its series Working Papers with number halshs-00790859.

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Date of creation: Feb 2012
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Handle: RePEc:hal:wpaper:halshs-00790859
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00790859
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  1. Sarah Harrower & John Hoddinott, 2005. "Consumption Smoothing in the Zone Lacustre, Mali," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(4), pages 489-519, December.
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  3. Jane G Fortson, 2011. "Mortality Risk and Human Capital Investment: The Impact of HIV/AIDS in Sub-Saharan Africa," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 1-15, February.
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  7. repec:mpr:mprres:6928 is not listed on IDEAS
  8. Fafchamps, Marcel, 1992. "Solidarity Networks in Preindustrial Societies: Rational Peasants with a Moral Economy," Economic Development and Cultural Change, University of Chicago Press, vol. 41(1), pages 147-74, October.
  9. Gabriela Flores & Jaya Krishnakumar & Owen O'Donnell & Eddy van Doorslaer, 2008. "Coping with health-care costs: implications for the measurement of catastrophic expenditures and poverty," Health Economics, John Wiley & Sons, Ltd., vol. 17(12), pages 1393-1412.
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  11. de la Briere, Benedicte & Sadoulet, Elisabeth & de Janvry, Alain & Lambert, Sylvie, 2002. "The roles of destination, gender, and household composition in explaining remittances: an analysis for the Dominican Sierra," Journal of Development Economics, Elsevier, vol. 68(2), pages 309-328, August.
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