The Impact of Microcredit on Child Education: Quasi-experimental Evidence from Rural China

Abstract

This article assesses causal effects of formal microcredit on children’s educational outcomes by using household panel data (2000 and 2004) in north-west rural China. The unobservables between borrowers and non-borrowers are controlled in static and dynamic regression-discontinuity designs. The static analysis reveals significant positive impact of microcredit on schooling years in 2000 only, and no influence on academic performance for either wave. The dynamic analysis shows progressive treatment effects on both longer schooling years and higher average scores. Formal microcredit improves education in the longer term compared to the short term, and hence may help relaxing the grip of educational poverty traps.     

Child Schooling,Child Health,and Rainfall Shocks: Evidence from Rural Vietnam

Abstract

We study the effect of rainfall shocks on child schooling outcomes and on standardised height for age (a measure of child health) in rural Vietnam. We find that adverse rainfall shocks during pregnancy adversely affect children’s school entry delay and progress through school. Adverse rainfall shocks in the third year of life adversely affect both schooling and child health. These effects differ by region, as a result of constraints that reflect regional economic heterogeneity. We predict that policies that help rural families smooth income shocks will result in increases in human capital and in substantial cumulative returns over a worker’s working life.     

Economic Benefits of Rural Feeder Roads: Evidence from Ethiopia

We estimate households’ willingness-to-pay for rural feeder roads in Ethiopia. Using purposefully collected data, we compare the economic behaviour of households by remoteness to estimate the benefits of access to feeder roads. Although we cannot definitively assert a causal relationship, we cautiously estimate that gravel roads have internal rates of return of 12–35 per cent. These results suggest that rural feeder roads may have relatively high rates of return even in unfavourable settings where (a) small-scale farmers have low levels of marketed agricultural surplus, (b) non-farm earning opportunities are negligible, and (c) motorised transport services are not guaranteed.     

Growth and Chronic Poverty: Evidence from Rural Communities in Ethiopia

This article employs a computable general equilibrium model for Sandinista Nicaragua to argue that a foreign exchange constrained economy does not necessarily fall prey to the inflation‐devaluation‐inflation vicious cycle characteristic of more mature Keynesian economies. It is seen that when the economy is shocked by a devaluation, prices do not rise proportionately. Output increases and the distribution of income can actually improve. These results support Sandinista policy of raising wages along with devaluation, a policy widely criticised as counterproductive. When the model is structured to account for the combined effects of Sandinista policies, however, including rising government expenditure and multiple effective exchange rates, a host of macroeconomic problems experienced by the regime arise. Stagflation sets in, income distribution deteriorates and the incentives for export production seriously diminish.     

The Impact of School Meals on School Participation: Evidence from Rural India

This article assesses the effect of transition from monthly distribution of free food grains to the daily provision of free cooked meals to school children on enrolments and attendance in a rural area of India. School panel data allow a difference-in-differences estimation strategy to address possible endogeneity of programme placement. The results suggest that programme transition had a significant impact on improving the daily participation rates of children in lower grades. The average monthly attendance rate of girls in grade one was more than 12 percentage points higher while there was a positive but insignificant effect on grade one boys' attendance rate. The impact on enrolment levels was insignificant.     

The Impact of Cooking with Firewood on Respiratory Health: Evidence from Indonesia

The vast majority of households in low-income countries cook with firewood, which is known to produce various airborne toxins. We examine whether cooking with firewood results in poorer respiratory health by using a unique Indonesian household survey that collected direct measures of lung capacity. We find that individuals living in households that cook with firewood have 9.4 per cent lower lung capacity than those that cook with cleaner fuels. This impact is larger for women and children than for men. The results strongly support the international policy focus on facilitating households to switch to cooking with cleaner fuels.     

Short-Term Impacts of Solar Lanterns on Child Health: Experimental Evidence from Bangladesh

We implemented a 16-month randomised field experiment in unelectrified areas of Bangladesh to identify health impacts of solar lanterns among school-aged children. Our analysis of various health-related indicators – self-reporting, spirometers, and professional medical checkups – showed modest improvements in eye redness and irritation but no noticeable improvement in respiratory symptoms among treated students. Varying the number of solar products received within treatment households did not alter these results. This limited health benefit was not caused by nonutilisation of the products by treated children, spillover effects from treated to control students, or contamination resulting from unfavourable family cooking environments.     

Piped Water Access,Child Health and the Complementary Role of Education: Panel Data Evidence from South Africa

This study establishes the causal impact of piped water access on child health in rural South Africa (2008–2015) through the use of a panel dataset and a quasi-experimental sample space. By employing an ordinal measure of child health as the dependent variable within linear fixed effects, logit, ordinal probit, and propensity-score matched linear as well as non-linear Difference-in-Difference, it is demonstrated that positive health benefits for children with access to piped water are observed if and only if the minimum level of educational attainment of the primary-caregiver is equal to or greater than seven years. This finding of complementarity is demonstrated to be a function of an individual’s (in)capacity to evaluate water quality: people below this threshold suffer from a piped water bias, place insufficient weight on the observable characteristics of water when determining water quality, and are subsequently less likely to treat piped water preceding consumption.     

Computer-Assisted Instruction for Child Development: Evidence from an Educational Programme in Rural Zambia

This paper examines whether computer-assisted instruction has a positive impact on the literacy and numeracy skills of early grade students. An educational intervention implemented in Zambia integrated technology into classroom activity in order to mitigate weaknesses in teaching skills and address specific unmet student needs. Using a difference-in-difference combined with inverse propensity weights, results show that students’ numeracy and literacy skills are not significantly different from untreated community or government school students. At a third of the cost, the programme is the most cost-effective means of educating children in this poor region of Zambia.     

The Fiscal Effects of Aid in Ethiopia: Evidence from CVAR Applications

ABSTRACT

This article explores the fiscal effects of aid in Ethiopia using the Cointegrated Vector Auto-Regressive (CVAR) methodology to model complex long-run and short-run dynamics. We use national data for 1961–2010, including a measure of aid capturing flows through the budget as measured by the recipient. The data suggests three main conclusions on the long-run equilibrium. First, government long-term spending plans are based on domestic sources, treating aid as an additional source of revenue. Second, both grants and loans are positively related to tax revenue. Third, aid is positively associated with spending, with a particularly strong relation between capital expenditure and grants. Overall, our results show that aid in Ethiopia had beneficial fiscal effects.     

The Disease Environment,Schooling, and Development Outcomes: Evidence from Ethiopia

The disease environment could help explain underdevelopment in Africa. This article shows that local malaria risk is associated with worse local development outcomes. Combining an Ethiopian household survey with satellite-derived topographical information, the article shows that malaria incidence is correlated with village elevation, slope and their interaction; that is, malaria is sensitive to elevation in flatlands, where the habitat is suitable for mosquito breeding, but not in steeper lands. Using topography as a predictor of the disease environment, education levels are found to be negatively correlated with malaria. I find suggestive evidence that some other outcomes are related to malaria risk. Finally, the performance of topography predictors is assessed against other climate-based predictors of malaria.     

The Effect of Food Price Changes on Child Labour: Evidence from Uganda

Most people in developing countries spend up to 60 per cent of their income on food, even though the majority of them are farmers. Hence, a change in food prices affects both their revenue as well as expenditure, and it may thereby affect their labour market decisions. Using the Uganda National Panel Survey and monthly regional food prices, this paper examines the effect of changes in food prices on child labour. The empirical evidence shows that an increase in food prices is linked to an increase in the probability and the intensity of child labour. We find the effect of food price increases to be smaller among landowning households, which is consistent with the view that landowning households can better compensate for price shocks. The empirical results suggest that periodic shocks in food prices may have longer lasting effects on economic development in developing countries through the channel of child labour.     

For Health,Strength, and Daily Food: The Dual Impact of Remittances and Public Health Expenditure on Household Health Spending and Child Health Outcomes

Abstract

Child and infant mortality in developing countries decreased 33.5 per cent and 30.9 per cent, respectively, during 1995–2009, while remittances and public health spending more than doubled. I examine how remittances and government health spending improve these child health outcomes. Neither government health spending nor remittances causally affect household health spending. Public health spending has an insignificant negative impact on mortality. The increase in remittances causally accounts for 32 per cent and 37 per cent of the decline in child and infant mortality, respectively. Remittances reduce mortality through improved living standards from the relaxation of households’ budget constraints.     

Subjected to Sanitation: Caste Relations and Sanitation Adoption in Rural Tamil Nadu

If solving the global sanitation crisis lies within Indian borders, then it is important to understand the influence of caste relations on sanitation building and usage. Our ethnography investigated three villages in rural Tamil Nadu where seven separate sanitation interventions had failed. The analysis indicates caste relations played a key role in the failed interventions by creating and reinforcing the means by which caste groups distinguished themselves from each other at the village scale. Issues of cleaning, access to subsidies, latrine design, and purity served to facilitate and limit the processes that enable the everyday, unequal relationships of caste.     

The Effects of Child Physical Maltreatment on Nutritional Outcomes: Evidence from Peru

Do children whose parents use physical punishment as a disciplinary method have lower anthropometric measures? Using data for Peruvian children aged 0–5 years, we employ instrumental variables for physical punishment to overcome endogeneity problems common to the household violence literature. Across varying levels of controls, children exposed to physical punishment have significantly poorer short-term nutritional outcomes; although there is no effect on long-term nutrition. We explore heterogeneous effects and potential mechanisms. Children exposed to physical maltreatment fall ill more frequently and are less likely to access preventive and curative healthcare.     

Remittance Effects on Child Labour: Evidence from Burkina Faso

This article explores the effects of remittance receipt on child labour in an African context. We focus on Burkina Faso, a country with a high prevalence of child labour and a high rate of migration. Given the complex relationship between remittance receipt and household time allocation decisions, we instrument remittances using economic conditions in remittance-sending countries and explore heterogeneous effects across different types of potential remitters. While remittances have no significant effect on child labour on average, transfers reduce child labour in long-term migrant households, for whom the disruptive effect of migration is no longer felt. We find no gender difference but remittances seem to affect mainly the labour market participation of younger children.     

Social Networks and Factor Markets: Panel Data Evidence from Ethiopia

We investigate the role of an indigenous social network in Ethiopia, the iddir, in facilitating factor market transactions among smallholder farmers. We use detailed longitudinal household survey data and employ fixed effects estimation approaches to identify the effect of iddir membership on factor market transactions among farmers. We find that joining an iddir network improves households’ access to land, labour and credit transactions. Our findings also hint that iddir networks may crowd-out borrowing from local moneylenders (locally referred as ‘Arata Abedari’), a relatively expensive credit source. These results suggest that non-market institutions can play crucial roles in facilitating market transactions.     

The Heterogeneous Effects of a Food Price Crisis on Child School Enrolment and Labour: Evidence from Pakistan

Using a panel survey, this paper investigates how food price increases in Pakistan in 2008–2010 affect children’s school enrolment and labour. The causal identification relies on the geographical variations in food (wheat) price. The results show that the negative impacts of food price increase on school enrolment differ by gender, economic status and the presence of siblings. The negative effects on school do not directly correspond to the increase in child labour because the transition from being idle to labour activity or from school to being idle is significant, particularly among poor girls. The results also show that children in households with access to agricultural lands are not affected by higher food prices. The analyses reveal a more dynamic picture of the impact of food price increase on child status and contribute to broader policy discussion to mitigate the impact of crises on child education.     

The Impact of Political Leadership on Organisational Performance: Evidence from English Urban Government

Many commentators view the political management reforms of English local government with some scepticism, raising concerns about the desirability of stronger leadership and the efficacy of institutional reform in encouraging stronger leadership. Using data from a five-year evaluation of the impact of the Local Government Act 2000, this paper reports evidence suggesting that institutional variation does influence the way that organisations operate and can have a positive impact on their performance, though the results are mixed with the internal decision-making elements showing most difference, whilst there is less evidence of effects in relation to partnership working and engagement with the public. In hung and balanced authorities an internal focus on managing coalitions and party competitors is judged to impede the role of leaders in partnership working. In the concluding section, the paper develops the concept of facilitative leadership, which will continue to influence reform of local government and the practice of political leadership in local government. Policy-makers, by giving leaders the right mix of resources and incentives, can improve the effectiveness of urban political leadership and encourage the trend towards facilitative leadership.     

Bride Price and Fertility Decisions: Evidence from Rural Senegal

This paper provides evidence about the relationship between bride price payments and fertility decisions in Senegal. Higher bride price payments reduce the fertility pressure for women with results being robust to confounding socio-economic and contextual factors. The fertility-reducing impact is greater for women who are economically dependent on their husbands. In polygamous households and for arranged marriages, a lower bride price increases fertility pressure while in monogamous households and for non-arranged marriages, the bride price does not affect fertility. As bride price payments have less power over (economically) independent women, empowerment will give leeway to girls in traditional societies.