Present Bias and Underinvestment in Education? Long-run Effects of Childhood Exposure to Booms in Colombia

Bladimir Carrillo

No 288455, ETA: Economic Theory and Applications from Fondazione Eni Enrico Mattei (FEEM)

Abstract: This paper examines the long-run impacts of income shocks by exploiting variation in coffee cultivation patterns within Colombia and world coffee prices during cohorts' school-going years in a differences-in-differences framework. The results indicate that cohorts who faced higher returns to coffee-related work during school-going years completed fewer years of schooling and have lower income in adulthood. These findings suggest that leaving school during temporary booms results in a significant loss of long-term income. This is consistent with the possibility that students may ignore or heavily discount the future consequences of dropout decisions when faced with immediate income gains.

Keywords: Research; Methods/; Statistical; Methods (search for similar items in EconPapers)
Pages: 54
Date: 2019-05-15
New Economics Papers: this item is included in nep-bec and nep-dev
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Citations: View citations in EconPapers (3)

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https://ageconsearch.umn.edu/record/288455/files/NDL2019-007.pdf (application/pdf)

Related works:
Working Paper: Present Bias and Underinvestment in Education? Long-run Effects of Childhood Exposure to Booms in Colombia (2019)
Working Paper: Present Bias and Underinvestment in Education? Long-run Effects of Childhood Exposure to Booms in Colombia (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemth:288455

DOI: 10.22004/ag.econ.288455

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