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Selling Crops Early to Pay for School: A Large-Scale Natural Experiment in Malawi

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  • Brian Dillon

Abstract

In 2010, primary school in Malawi began in September, three months earlier than in 2009. I show that this change forced households to sell crops early, when prices are low. The effect is limited to households with school children, increases with the number of children, and is present only for poor households. Households that financed school by selling early missed out on an expected 17.3–26.5 percent increase in output prices over three months. There is little evidence of improved schooling outcomes as a result of the change. I discuss the implications for policies that offer farmers commitment opportunities at harvest.

Suggested Citation

  • Brian Dillon, 2021. "Selling Crops Early to Pay for School: A Large-Scale Natural Experiment in Malawi," Journal of Human Resources, University of Wisconsin Press, vol. 56(4), pages 1296-1325.
    • Handle: RePEc:uwp:jhriss:v:56:y:2021:i:4:p:1296-1325
    Note: DOI: 10.3368/jhr.56.4.0617-8899R1
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    File URL: http://jhr.uwpress.org/cgi/reprint/56/4/1396
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    Citations

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    Cited by:

    1. Albuquerque, Rui & de Araujo, Bruno & Brandao-Marques, Luis & Mosse, Gerivasia & de Vletter, Pippy & Zavale, Helder, 2024. "Market timing, farmer expectations, and liquidity constraints," Journal of Development Economics, Elsevier, vol. 168(C).
    2. Kayenat Kabir, 2023. "What Do We Know About Drought, Household Consumption and Seasonality: Evidence Review from Sub-Saharan Africa," Economics of Disasters and Climate Change, Springer, vol. 7(3), pages 303-317, November.
    3. Tabitha Nindi & Jacob Ricker‐Gilbert & Jonathan Bauchet, 2024. "Incentive mechanisms to exploit intraseasonal price arbitrage opportunities for smallholder farmers: Experimental evidence from Malawi," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(1), pages 330-353, January.
    4. Channa, Hira & Ricker-Gilbert, Jacob & Feleke, Shiferaw & Abdoulaye, Tahirou, 2022. "Overcoming smallholder farmers’ post-harvest constraints through harvest loans and storage technology: Insights from a randomized controlled trial in Tanzania," Journal of Development Economics, Elsevier, vol. 157(C).
    5. Xiaoyu Sun & Xiaoli Yang & Ruilong Zhang, 2022. "The Determinants of Grape Storage: Evidence from Grape Growers in China," Agriculture, MDPI, vol. 12(12), pages 1-14, December.

    More about this item

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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