Household Shocks and Education Investment in Madagascar

Oxford Bulletin of Economics and Statistics, 2016 Forthcoming

Posted: 13 Dec 2015

See all articles by Peter Glick

Peter Glick

RAND Corporation

David E. Sahn

Cornell University

Thomas F. Walker

Cornell University; World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: December 2015


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.

Suggested Citation

Glick, Peter and Sahn, David E. and Walker, Thomas F. and Walker, Thomas F., Household Shocks and Education Investment in Madagascar (December 2015). Oxford Bulletin of Economics and Statistics, 2016 Forthcoming, Available at SSRN:

Peter Glick (Contact Author)

RAND Corporation ( email )

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David E. Sahn

Cornell University ( email )

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Thomas F. Walker

Cornell University ( email )

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World Bank ( email )

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