Household Shocks and Education Investments in Madagascar

22 Pages Posted: 8 Nov 2016

See all articles by Peter Glick

Peter Glick

RAND Corporation

David E. Sahn

Cornell University

Thomas F. Walker

World Bank; Cornell University

Date Written: December 2016

Abstract

This paper investigates the impact of exogenous shocks to household income, assets and labour supply on children's school attendance in Madagascar. The analysis uses a unique data set with 10 years of recall data on school attendance and household shocks. We find that the probability of a child dropping out of school increases significantly when the household experiences an illness, death or asset shock. We propose a test to distinguish whether the impact of shocks on school attendance can be attributed to credit constraints, labour market rigidities, or a combination of the two. The results suggest that credit constraints, rather than labour market rigidities, explain the inability of households in Madagascar to keep their children in school during times of economic stress.

Suggested Citation

Glick, Peter and Sahn, David E. and Walker, Thomas F. and Walker, Thomas F., Household Shocks and Education Investments in Madagascar (December 2016). Oxford Bulletin of Economics and Statistics, Vol. 78, Issue 6, pp. 792-813, 2016, Available at SSRN: https://ssrn.com/abstract=2866085 or http://dx.doi.org/10.1111/obes.12129

Peter Glick (Contact Author)

RAND Corporation ( email )

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David E. Sahn

Cornell University ( email )

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HOME PAGE: http://courses.cit.cornell.edu/des16

Thomas F. Walker

World Bank ( email )

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Cornell University ( email )

Department of Economics
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Ithaca, NY 14853-7601
United States

HOME PAGE: http://sites.google.com/a/cornell.edu/thomaswalker/

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