Do Different Types of Assets have Differential Effects on Child Education?
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World Bank, Washington, DC
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To assess the conventional view that
assets uniformly improve childhood development through
wealth effects, this paper tests whether different types of
assets have different effects on child education. The
analysis indicates that household durables and housing
quality have the expected positive effects, but agricultural
assets have adverse effects on highest grade completed and
no effects on exam performance. Extending the standard
agricultural-household model by explicitly including child
labor, the study uses three waves of panel data from
Tanzania to estimate the effects of household assets on
child education. The analysis corrects for the endogeneity
of assets and uses a Hausman-Taylor instrumental variable
panel data estimator to identify the effects of
time-invariant observables and more efficiently control for
time-invariant unobservables. The negative effect of
agricultural assets is more pronounced among rural children
and children from farming households, presumably due to the
higher opportunity cost of their schooling.
Palabras clave
LIVING STANDARDS MEASUREMENT STUDY, INTEGRATED SURVEYS ON AGRICULTURE, LSMS, ASSET OWNERSHIP, EARLY CHILDHOOD EDUCATION, GRADE COMPLETION, SCHOOL ENROLLMENT, SCHOOL PERFORMANCE, CHILD LABOR
