IDEAS home Printed from https://ideas.repec.org/p/pid/wpaper/202016.html
   My bibliography  Save this paper

Macro Shocks and Child Grade Attainment in Rural Pakistan

Author

Listed:
  • M. Jehangir Khan

    (Pakistan Institute of Development Economics, Islamabad.)

  • Wei Yin

    (School of Economics and Management, Southeast University, China.)

  • Aqsa Anwar

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

This study attempts to investigate the effects of idiosyncratic and covariate shocks on the educational attainment of rural Pakistani children. For this purpose, we use Pakistan Rural Household Panel Survey (PRHPS-2012, round 1). The empirical evidence is reported for all children, male and female children while using the censored ordered probit model. The results show that covariate shocks are inversely affecting child grade progression for all children and gender. Conversely, the effect of idiosyncratic shocks is insignificant for these children. Covariate shocks adversely affect investment and spending decisions of many households. More importantly, it’s devastating effect is higher for girl’s (grade attainment is almost lower by 10 percent) than that of boys. These results suggest that public support should focus on mitigating the adverse effects of covariate shocks facing by households in rural Pakistani communities. Furthermore, the choice of promoting formal private insurance may not be practical in such circumstances or in the short run.

Suggested Citation

  • M. Jehangir Khan & Wei Yin & Aqsa Anwar, 2020. "Macro Shocks and Child Grade Attainment in Rural Pakistan," PIDE-Working Papers 2020:16, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2020:16
    as

    Download full text from publisher

    File URL: https://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-2020-16.pdf
    File Function: First Version, 2020
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peter J. Glick & David E. Sahn & Thomas F. Walker, 2016. "Household Shocks and Education Investments in Madagascar," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(6), pages 792-813, December.
    2. Jungho Kim & Alexia Prskawetz, 2010. "External Shocks, Household Consumption and Fertility in Indonesia," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 29(4), pages 503-526, August.
    3. Zhao, Meng & Glewwe, Paul, 2010. "What determines basic school attainment in developing countries? Evidence from rural China," Economics of Education Review, Elsevier, vol. 29(3), pages 451-460, June.
    4. Claudia Goldin, 1999. "Egalitarianism and the Returns to Education during the Great Transformation of American Education," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 65-94, December.
    5. Harold Alderman & Peter F. Orazem & Elizabeth M. Paterno, 2001. "School Quality, School Cost, and the Public/Private School Choices of Low-Income Households in Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 304-326.
    6. Thuan Q. Thai & Evangelos M. Falaris, 2014. "Child Schooling, Child Health, and Rainfall Shocks: Evidence from Rural Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 1025-1037, July.
    7. Asma Hyder & Jere R Behrman & Hans-Peter Kohler, 2015. "Negative economic shocks and child schooling: Evidence from rural Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 32(4), pages 458-476, July.
    8. Pushkar Maitra, 2003. "Schooling and Educational Attainment: Evidence from Bangladesh," Education Economics, Taylor & Francis Journals, vol. 11(2), pages 129-153.
    9. Nina Hunter & Julian May, 2011. "Poverty, shocks and school disruption episodes among adolescents in KwaZulu-Natal, South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 28(1), pages 1-17.
    10. Mu, Ren, 2006. "Income Shocks, Consumption, Wealth, and Human Capital: Evidence from Russia," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 857-892, July.
    11. Muhammad Jehangir Khan, 2019. "School Quality and Parental Schooling Decisions for Their Children: Public and Private Schools in Rural Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 58(2), pages 177-202.
    12. Nadeem A. Burney & Mohammad Irfan, 1991. "Parental Characteristics, Supply of Schools, and Child School-enrolment in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 30(1), pages 21-62.
    13. Namsuk Kim & Marta Serra-Garcia, 2010. "Economic Crises, Health and Education in Jamaica," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 25(1), pages 105-134.
    14. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," The World Bank Research Observer, World Bank, vol. 17(2), pages 141-166, September.
    15. Colmer, Jonathan, 2013. "Climate Variability, Child Labour and Schooling: Evidence on the Intensive and Extensive Margin," Climate Change and Sustainable Development 158735, Fondazione Eni Enrico Mattei (FEEM).
    16. Rashida Haq, 2012. "Shocks as a Source of Vulnerability: An Empirical Investigation from Pakistan," Poverty and Social Dynamics Paper Series 2012:06, Pakistan Institute of Development Economics.
    17. Lorenzo Guarcello & Fabrizia Mealli & Furio Rosati, 2010. "Household vulnerability and child labor: the effect of shocks, credit rationing, and insurance," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 169-198, January.
    18. Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers 99-04, RAND - Labor and Population Program.
    19. Richard Akresh, 2009. "Flexibility of Household Structure: Child Fostering Decisions in Burkina Faso," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
    20. Nazmul Chaudhury & Luc Christiaensen & Mohammad Niaz Asadullah, 2006. "Schools, Household, Risk, and Gender: Determinants of Child Schooling in Ethiopia," CSAE Working Paper Series 2006-06, Centre for the Study of African Economies, University of Oxford.
    21. Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers 99-04, RAND - Labor and Population Program.
    22. Pedro Conceição & Namsuk Kim & Yanchun Zhang, 2010. "Overview: Economic Crises and Human Development," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 25(1), pages 37-62.
    23. King, Elizabeth M. & Lillard, Lee A., 1987. "Education policy and schooling attainment in Malaysia and the Philippines," Economics of Education Review, Elsevier, vol. 6(2), pages 167-181, April.
    24. David McKenzie & Hillel Rapoport, 2011. "Can migration reduce educational attainment? Evidence from Mexico," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1331-1358, October.
    25. Haiyun Zhao, 2010. "Economics education in China," International Journal of Pluralism and Economics Education, Inderscience Enterprises Ltd, vol. 1(4), pages 303-316.
    26. Debebe, Z.Y., 2010. "Child labor, agricultural shocks and labor sharing in rural Ethiopia," ISS Working Papers - General Series 18702, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    27. Jonathan Colmer, 2013. "Climate Variability, Child Labour and Schooling: Evidence on the Intensive and Extensive Margin," Working Papers 2013.81, Fondazione Eni Enrico Mattei.
    28. Paul Glewwe & Hanan Jacoby, 1994. "Student Achievement and Schooling Choice in Low-Income Countries: Evidence from Ghana," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 843-864.
    29. Sonia Bhalotra, 2003. "Child Labour in Africa," OECD Social, Employment and Migration Working Papers 4, OECD Publishing.
    30. Emmanuel Skoufias & Susan Parker, 2006. "Job loss and family adjustments in work and schooling during the Mexican peso crisis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(1), pages 163-181, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:lje:journl:v:21:y:2016:i:1:p:69-98 is not listed on IDEAS
    2. Muhammad Jehangir Khan, 2019. "School Quality and Parental Schooling Decisions for Their Children: Public and Private Schools in Rural Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 58(2), pages 177-202.
    3. Mahmud, Mahreen & Riley, Emma, 2021. "Household response to an extreme shock: Evidence on the immediate impact of the Covid-19 lockdown on economic outcomes and well-being in rural Uganda," World Development, Elsevier, vol. 140(C).
    4. Sarah Xue Dong, 2017. "The differential impact of economic crisis on men and women, and its connection to intra-household bargaining," WIDER Working Paper Series wp-2017-134, World Institute for Development Economic Research (UNU-WIDER).
    5. Francesca Marchetta & David E. Sahn, 2016. "The Role of Education and Family Background in Marriage, Childbearing, and Labor Market Participation in Senegal," Economic Development and Cultural Change, University of Chicago Press, vol. 64(2), pages 369-403.
    6. Valeria Groppo & Kati Kraehnert, 2017. "The impact of extreme weather events on education," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(2), pages 433-472, April.
    7. Lim, Sung Soo, 2020. "Parental chronic illness and child education: Evidence from children in Indonesia," International Journal of Educational Development, Elsevier, vol. 73(C).
    8. Benabid Jegaden, Robin & Lemoine, Jade, 2021. "Chocs de revenu et éducation des enfants en présence d’imperfections du marché du crédit et de l’assurance : Mécanismes décisionnels en Ethiopie," SocArXiv 3qrjv, Center for Open Science.
    9. Di Maio, Michele & Nisticò, Roberto, 2019. "The effect of parental job loss on child school dropout: Evidence from the Occupied Palestinian Territories," Journal of Development Economics, Elsevier, vol. 141(C).
    10. Shwetlena Sabarwal & Nistha Sinha & Mayra Buvinic, 2011. "How Do Women Weather Economic Shocks? What We Know," World Bank Publications - Reports 10113, The World Bank Group.
    11. W. Nabiddo & B.L. Yawe & F. Wasswa, 2022. "Education attainment and household education expenditure in Uganda: An empirical investigation," Journal of Economic Policy and Management Issues, JEPMI, vol. 1(1), pages 21-49.
    12. Zhao, Meng & Konishi, Yoshifumi & Glewwe, Paul, 2012. "Does smoking affect schooling? Evidence from teenagers in rural China," Journal of Health Economics, Elsevier, vol. 31(4), pages 584-598.
    13. Takasaki, Yoshito, 2017. "Do Natural Disasters Decrease the Gender Gap in Schooling?," World Development, Elsevier, vol. 94(C), pages 75-89.
    14. Yonatan Dinku & David Fielding & Murat Genç, 2018. "Health shocks and child time allocation decisions by households: evidence from Ethiopia," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-23, December.
    15. Feng Hu, 2013. "Does migration benefit the schooling of children left behind?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(2), pages 33-70.
    16. Derek Headey & Olivier Ecker & Jean-Francois Trinh Tan, 2014. "Shocks to the system: monitoring food security in a volatile world," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 3, pages 41-71, Edward Elgar Publishing.
    17. Tsaneva, Magda, 2017. "Does school Matter? Learning outcomes of Indonesian children after dropping out of school," World Development Perspectives, Elsevier, vol. 6(C), pages 1-10.
    18. Robin Benabid Jegaden & Jade Lemoine, 2021. "Income shocks and Human capital investment in the presence of credit and insurance market imperfections : Decision-making mechanisms in Ethiopia [Chocs de revenu et éducation des enfants en présenc," Working Papers hal-03527638, HAL.
    19. Mussa, Richard, 2009. "Household economic status, schooling costs, and schooling bias against non-biological children in Malawi," MPRA Paper 15855, University Library of Munich, Germany, revised 21 Jun 2009.
    20. Sarah Xue Dong, 2017. "The differential impact of economic crisis on men and women, and its connection to intrahousehold bargaining," WIDER Working Paper Series 134, World Institute for Development Economic Research (UNU-WIDER).
    21. Khan, Muhammad Jehangir & Ahmed, Junaid, 2021. "Child education in the time of pandemic: Learning loss and dropout," Children and Youth Services Review, Elsevier, vol. 127(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:wpaper:2020:16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.