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.

Africa., aggregate shocks, education, household income, inflation
Analysis of Education (jel I21), Microeconomic Analyses of Economic Development (jel O12), Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets (jel Q12)
Erasmus University Rotterdam
ISS Working Papers - General Series
ISS Working Paper Series / General Series
International Institute of Social Studies of Erasmus University (ISS)

Grimm, M. (2009). Food price inflation and children's schooling. ISS Working Paper Series / General Series (Vol. 472, pp. 1–30). Erasmus University Rotterdam. Retrieved from http://hdl.handle.net/1765/18721