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Adult returns to schooling and children's school enrollment: theory and evidence from South Africa

In: Child Labor and the Transition between School and Work

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  • Sarah Donovan
  • Kenneth A. Swinnerton

Abstract

We study how the returns to education in the adult labor market affect children's school enrollment. We show that when families are liquidity constrained, the expected relationship between higher returns and children's schooling is ambiguous. When liquidity constraints matter, the relationship can only be assessed empirically. For African-South African liquidity-constrained households, we find a positive relationship that is quite robust.

Suggested Citation

  • Sarah Donovan & Kenneth A. Swinnerton, 2010. "Adult returns to schooling and children's school enrollment: theory and evidence from South Africa," Research in Labor Economics, in: Child Labor and the Transition between School and Work, pages 297-319, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-9121(2010)0000031013
    DOI: 10.1108/S0147-9121(2010)0000031013
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