EconPapers    
Economics at your fingertips  
 

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) Track citations by RSS feed

Downloads: (external link)
http://vox.lacea.org/files/Working_Papers/lacea_wps_0025_carrillo.pdf

Related works:
Journal Article: Present Bias and Underinvestment in Education? Long-Run Effects of Childhood Exposure to Booms in Colombia (2020) Downloads
Working Paper: Present Bias and Underinvestment in Education? Long-run Effects of Childhood Exposure to Booms in Colombia (2019) Downloads
Working Paper: Present Bias and Underinvestment in Education? Long-run Effects of Childhood Exposure to Booms in Colombia (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:col:000518:017219

Access Statistics for this paper

More papers in Documentos de Trabajo from The Latin American and Caribbean Economic Association (LACEA) Contact information at EDIRC.
Bibliographic data for series maintained by LACEA ().

 
Page updated 2023-11-24
Handle: RePEc:col:000518:017219