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Posh Spice or Scary Spice? Resource Booms, Wealth, and Human Capital across Ages

Author

Listed:
  • Boone, Christopher

    (University of Massachusetts Amherst)

  • Kaila, Heidi

    (World Bank)

  • Sahn, David E.

    (Cornell University)

Abstract

We examine the impact of a six-fold increase in the global vanilla price on smallholder vanilla-farming households in Madagascar. The price increase leads to sizable gains in household assets and significant improvements in adult psychological well-being, cognitive performance, and optimism about the economy. In contrast, we find no significant effects on children's health or schooling. Given substantial evidence from the literature that improvements in household economic resources can have large effects on children over the long run, the lack of shorterterm effects in this setting may reflect the time-varying nature of the impact or the need for additional complementary investments.

Suggested Citation

  • 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, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp17085
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    More about this item

    Keywords

    export commodities; agriculture; human capital; crime;
    All these keywords.

    JEL classification:

    • 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
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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