The (Positive) Effect of Macroeconomic Crises on the Schooling and Employment Decisions of Children in a Middle-Income Country

The impact of macroeconomic crises on parents' investments in the human capital of their children is a widely contested issue. The author analyzes the effects of the profound macroeconomic crisis in Peru in 1988-92 on the schooling and employment decisions made by urban school-age children. He arrives at two basic findings: First, the crisis had no effect on the attendance rates of school-age children. But the share of children who were both employed and in school fell significantly during the crisis. Second, mean educational attainment was significantly higher for children who were exposed to the crisis than for those who were not. THe author argues that these findings may be related: children who are not employed have more time available and may therefore put more effort into school. He concludes with a discussion of the implications of his findings for the design of appropriate social protection policies.

Bibliographic Details

Main Author:	Schady, Norbert R.
Language:	English en_US
Published:	World Bank, Washington, DC 2002-01-31
Subjects:	ADULT EDUCATION, AGED, CHILD LABOR, DEBT, DEMOGRAPHIC STRUCTURE, DEPENDENT VARIABLE, DEPRESSION, DEVELOPED COUNTRIES, DISASTERS, ECONOMIC CONTRACTION, EDUCATIONAL ATTAINMENT, EMPIRICAL EVIDENCE, EMPLOYMENT, ENROLLMENT, ENROLLMENT RATES, ENROLMENT RATES, EXPENDITURES, FIRST GRADE, FOREIGN EXCHANGE, GIRLS, HEALTH SURVEY, HEALTH SURVEYS, HOUSEHOLD BEHAVIOR, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD DATA, HOUSEHOLD EXPENDITURES, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD SIZE, HUMAN CAPITAL, INCOME, INCOME DISTRIBUTION, INCOME HOUSEHOLDS, INCOME LEVELS, INCOME QUINTILES, INFLATION, INFORMAL SECTOR, INTEREST RATES, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR MARKETS, LEISURE, LIVING STANDARDS, LIVING STANDARDS MEASUREMENT, LONG-TERM TRENDS, MACROECONOMIC CRISIS, MARGINAL BENEFITS, MARGINAL COST, MARGINAL COSTS, MEAN INCOME, MIGRANTS, MIGRATION, MULTIVARIATE REGRESSIONS, NUTRITION, NUTRITIONAL STATUS, PARENTS, POLICY MAKERS, POLICY RESEARCH, POOR HOUSEHOLDS, PRIMARY EDUCATION, PRIMARY SCHOOL, PRIVATE COSTS, PRIVATE SECTOR, PRODUCTIVITY, PUBLIC EXPENDITURES, PUBLIC SECTOR, REAL WAGES, RELATIVE MAGNITUDE, RURAL AREAS, SAFETY, SAMPLE SIZES, SCHOOLING ATTAINMENT, SOCIAL PROTECTION, TERTIARY EDUCATION, UNEMPLOYMENT, URBAN AREAS, WAGES, WORKERS MACROECONOMIC SHOCKS, SCHOOLING, HUMAN CAPITAL DEVELOPMENT, OPPORTUNITY COSTS, SOCIAL PROTECTION SYSTEMS, MIDDLE-INCOME ECONOMIES, ATTENDANCE, EDUCATIONAL ACHIEVEMENT,
Online Access:	http://documents.worldbank.org/curated/en/2002/01/1687155/positive-effect-macroeconomic-crises-schooling-employment-decisions-children-middle-income-country https://hdl.handle.net/10986/15723
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