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.

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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