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Income Risks, Gender, and Human Capital Investment in a Developing Country

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  • Yasuyuki Sawada

    (Faculty of Economics, University of Tokyo)

Abstract

This paper investigates the role of permanent and transitory incomes in educational investments using household panel data from Pakistan. The empirical results indicate that transient poverty is a serious obstacle to human capital investment. Our analysis also points out that schooling response to an income shock is consistently larger for daughters than sons and that there may exist resource competition among siblings. Human capital investment and intrahousehold schooling allocation decisions seem to be affected by a need for self-insurance devices under binding credit constraints. As a by-product, our empirical results are in favor of the investment model of education against the consumption model.

Suggested Citation

  • 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.
    • Handle: RePEc:tky:fseres:2003cf198
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    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2003/2003cf198.pdf
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    References listed on IDEAS

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    Cited by:

    1. David SAHN & Peter GLICK & Thomas F. WALKER, 2012. "Household Shocks and Education Investment in Madagascar," Working Papers 201227, CERDI.
    2. Marcel Fafchamps & Agnes R. Quisumbing, 2003. "Social roles, human capital, and the intrahousehold division of labor: evidence from Pakistan," Oxford Economic Papers, Oxford University Press, vol. 55(1), pages 36-80, January.
    3. Kazianga, Harounan, 2012. "Income Risk and Household Schooling Decisions in Burkina Faso," World Development, Elsevier, vol. 40(8), pages 1647-1662.
    4. Peter J. Glick & David E. Sahn & Thomas F. Walker, 2016. "Household Shocks and Education Investments in Madagascar," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(6), pages 792-813, December.
    5. Michael Clemens, 2004. "The Long Walk to School: International Education Goals in Historical Perspective," Working Papers 37, Center for Global Development.
    6. Fafchamps, Marcel & Quisumbing, Agnes R., 1999. "Social roles, human capital, and the intrahousehold division of labor," FCND discussion papers 73, International Food Policy Research Institute (IFPRI).

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