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

Bladimir Carrillo

No 17219, Documentos de Trabajo from The Latin American and Caribbean Economic Association (LACEA)

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: Coffee price shocks; transitory income shocks; human capital accumulation; opportunitycost of schooling; long-run impacts; schooling. (search for similar items in EconPapers)
JEL-codes: J24 O12 O13 (search for similar items in EconPapers)
Pages: 51
Date: 2019-03-28
New Economics Papers: this item is included in nep-dev, nep-edu, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://vox.lacea.org/files/Working_Papers/lacea_wps_0025_carrillo.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:col:000518:017219

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