Do Different Types of Assets Have Differential Effects on Child Education? Evidence from Tanzania

Kashi Kafle, Dean Jolliffe and Alex Winter-Nelson ()
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Alex Winter-Nelson: University of Illinois

No 11233, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This analysis is motivated by recognition that anti-poverty interventions often affect both the level and composition of assets held by beneficiaries. To assess the conventional view that assets uniformly improve childhood development through wealth effects, we use three waves of panel data from Tanzania and test whether different types of assets have differential effects on children's educational outcomes. Our results indicate that household durables and housing quality have positive effects, but agricultural assets have adverse effects on children's highest grade completed and exam performances. We use a Hausman-Taylor instrumental variable (HTIV) panel data estimator to identify the effects of both time-varying and time-invariant endogenous variables. We find that the negative effect of agricultural assets is driven by large agricultural equipment and livestock ownership and the negative effect is more pronounced among rural children, poor children, and children from farming households, presumably due to the higher opportunity cost of schooling.

Keywords: Tanzania; asset ownership; child education; highest grade completed; LSMS-ISA; school performance (search for similar items in EconPapers)
JEL-codes: D13 I25 J22 O12 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2017-12
New Economics Papers: this item is included in nep-agr, nep-dev and nep-ure
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Published - published in: World Development, 2018, 109, 14 - 28

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Journal Article: Do different types of assets have differential effects on child education? Evidence from Tanzania (2018)
Working Paper: Do different types of assets have differential effects on child education ? evidence from Tanzania (2017)
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