Household Shocks and Education Investment in Madagascar

Peter Glick (), David Sahn and Thomas F. Walker
Additional contact information
Peter Glick: RAND
Thomas F. Walker: World Bank

No 8731, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper measured the extent to which households in Madagascar adjust children's school attendance in order to cope with exogenous shocks to household income, assets and labour supply. Our analysis was based on a unique data set with 10 years of recall data on school attendance and household shocks. We found that the probability of a child dropping out of school increased significantly when the household experienced an illness, death or asset shock. We proposed a test to distinguish whether the impact of shocks on school attendance could be attributed to credit constraints, labour market rigidities, or a combination of the two. The results of the test suggested that credit constraints, rather than labour market rigidities, explain the inability of households in Madagascar to keep their children in school during times of economic distress.

Keywords: education; development; household shocks; time allocation; labor supply; Madagascar (search for similar items in EconPapers)
JEL-codes: D13 E24 I25 J22 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2014-12
New Economics Papers: this item is included in nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Oxford Bulletin of Economics and Statistics, 2016, 78 (6), 792 - 813

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Related works:
Journal Article: Household Shocks and Education Investments in Madagascar (2016)
Working Paper: Household Shocks and Education Investment in Madagascar (2012)
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