Food Price Inflation and Children's Schooling
34 Pages Posted: 7 Jul 2009 Last revised: 22 Jun 2011
Date Written: November 27, 2008
I analyze the impact of food price inflation on parental decisions to send their children to school. Moreover, I use the fact that food crop farmers and cotton farmers were exposed differently to that shock to estimate the income elasticity of school enrolment. The results suggest that the shock-induced loss in purchasing power had an immediate effect on enrolment rates. Instrumental variable estimates show that the effect of household income on children's school enrolment is much larger than a simple OLS regression would suggest. Hence, policies to expand education in Sub-Saharan Africa, should not neglect the demand side.
Keywords: education, household income, inflation, aggregate shocks, Africa
JEL Classification: I21, O12, Q12
Suggested Citation: Suggested Citation