Long-Term Impact of Investments in Early Schooling: Empirical Evidence from Rural Ethiopia

Fordham University Department of Economics Discussion Paper No. 2009-09

28 Pages Posted: 19 Nov 2009

See all articles by Subha Mani

Subha Mani

Fordham University - Fordham College at Rose Hill

John Hoddinott

Cornell University, Dyson School of Applied Economics and Management, Students

John Strauss

University of Southern California - Department of Economics

Date Written: November, 18 2009

Abstract

This paper identifies the cumulative impact of early schooling investments on later schooling outcomes in a developing country context using enrollment status and relative grade attainment as short-run and long-run measures of schooling. Using a child-level longitudinal data set from rural Ethiopia, we estimate a dynamic conditional schooling demand function where the coefficient estimate on the lagged dependent variable captures the impact of all previous periods schooling inputs and resources. We find that this lagged dependent variable indicates a strong positive association between current and lagged schooling. Past history matters more for girls than boys and for children from higher income households compared to the poor.

Keywords: schooling, path dependence, panel data, dynamic model

JEL Classification: I21, 012, C23

Suggested Citation

Mani, Subha and Hoddinott, John and Strauss, John, Long-Term Impact of Investments in Early Schooling: Empirical Evidence from Rural Ethiopia (November, 18 2009). Fordham University Department of Economics Discussion Paper No. 2009-09. Available at SSRN: https://ssrn.com/abstract=1508886 or http://dx.doi.org/10.2139/ssrn.1508886

Subha Mani (Contact Author)

Fordham University - Fordham College at Rose Hill ( email )

United States

John Hoddinott

Cornell University, Dyson School of Applied Economics and Management, Students ( email )

Ithaca, NY
United States

John Strauss

University of Southern California - Department of Economics ( email )

306A Kaprielian Hall
Los Angeles, CA 90089
United States

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