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The effect of coffee price shock on school dropout: new evidence from the 2008 global financial crisis

Abraham Abebe Asfaw

Applied Economics Letters, 2018, vol. 25, issue 7, 482-486

Abstract: This article examines the effect of coffee price shock on the school dropout status of children in rural Ethiopia. To identify the effect, I exploit the exogenous coffee price shock caused by the 2008 global financial crisis. Using a unique rural data set collected before and shortly after the crisis, I compare the school dropout status of children in coffee-producing and non–coffee-producing villages. The difference-in-difference estimate suggests that the decline in the global price of coffee during the financial crisis increased school dropout rates among children aged 15–18 in coffee-producing villages. The effect is more pronounced among female children in this age group.

Date: 2018
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