Food Price Inflation and Children's Schooling

34 Pages Posted: 7 Jul 2009 Last revised: 22 Jun 2011

See all articles by Michael Grimm

Michael Grimm

Erasmus University Rotterdam; University of Passau; IZA; DIW Berlin

Date Written: November 27, 2008

Abstract

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

Grimm, Michael, Food Price Inflation and Children's Schooling (November 27, 2008). DOES HOUSEHOLD INCOME MATTER FOR CHILDREN'S SCHOOLING? EVIDENCE FOR RURAL SUB-SAHARAN AFRICA, Economics of Education Review, Vol. 30, pp. 740-754, 2011. Available at SSRN: https://ssrn.com/abstract=1428836 or http://dx.doi.org/10.2139/ssrn.1428836

Michael Grimm (Contact Author)

Erasmus University Rotterdam ( email )

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University of Passau ( email )

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IZA ( email )

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DIW Berlin ( email )

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Berlin, 10117
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