The Effects of Risk on Education in Indonesia

Emla Fitzsimons

Economic Development and Cultural Change, 2007, vol. 56, issue 1, 1-25

Abstract: We study the effects of risk and uncertainty on education in Indonesia. Households that face more uncertainty and that have limited or no access to formal insurance will have a higher motive for self-insurance, and this may have adverse consequences for investment in child education. A key contribution of the article is to decompose risk into village- and household-level components and to estimate whether they have different effects on education. We find no evidence of household risk affecting child education; however, there is evidence that village risk adversely affects investment in education.

Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ucp:ecdecc:v:56:y:2007:p:1-25

DOI: 10.1086/520560

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